dscaping companies counts up to one is over two months LO1 Problem 7-2A Using an Aging Schedule to Account for Bad Debt Rough Stuff is a distributor of large rocks. It sells on credit to commercial landscaping cod and extends terms that require customers to pay in 60 days. For accounts that are not over Rough Stuff has found that there is a 90% probability of collection. For accounts un month past due, the likelihood of collection decreases to 75%. If accounts are between One two months past due, the probability of collection is 65%, and if an account is over two m past due, Rough Stuff estimates only a 25% chance of collecting the receivable. On December 31, 2017, the balance in Allowance for Doubtful Accounts is $34.590 amounts of gross receivables, by age, on this date are as follows: Category Amount Current $200,000 Past due: Less than one month 60,300 One to two months 35,000 Over two months 45,000 Required 2. 1. Prepare a schedule to estimate the amount of uncollectible accounts at December 31, 2017 Rough Stuff knows that $40,000 of the $45,000 amount that is more than two months overdue is due from one customer that is in severe financial trouble. It is rumored that the customer will be filing for bankruptcy in the near future. As controller for Rough Stuff, how would you handle this situation 3. Show how accounts receivable would be presented on the December 31, 2017, balance sheet