Blue Company sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken advantage of the discount by paying within 10 days of the invoice date. The number of customers taking the full 30 days to pay has increased within the last year. Current indications are that less than 60% of the customers are now taking the discount. Uncollectibles as a percentage of gross credit sales have risen from the 3.3% average in past years to about 5.4% in the current year. The company's Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the following report. The fact that some credit accounts will prove uncollectible is normal. Annual customer account wrike-offs have been 3.3% of gross credit sales over the past 5 years. During the last fiscal year, this percentage increased to slightly less than 5.4%. The current Accounts Receivable balance is $1,200,000. The distribution of this balance in terms of age and probability of collection is as follows. BLUE COMPANY Accounts Receivable Collections May 31, 2022 Proportion of Total Age Categories Probability of Collection a E 24448 8:46 PM 4/17/2023