Knowledge Check 01 Sampson Company creates the following accounts receivable aging report at the end of the year: Age 060 days 61-20 days 121-180 days More than 180 days Total Accounts Receivable ($ in millions) $20 10 5 10 $ 45 Estimated Uncollectible 15% 25% 50% 80% The balance of the Allowance for Uncollectible Accounts before adjustment is $5 million (credil. Use the information above to calculate the estimated ending balance in the Allowance for Uncollectible Accounts. Multiple Choice $3 million $11 million $16 million $21 million ! Required information Learning Objective 05-05 Adjust the allowance for uncollectible accounts in subsequent years (The following information applies to the questions displayed below.) Using the aging method to estimate uncollectible accounts is more accurate than applying a single percentage to all accounts receivable. The aging method recognizes that the longer accounts are past due, the less likely they are to be collected The year-end adjustment for future uncollectible accounts is affected by the current balance of Allowance for Uncollectible Accounts before adjustment. The current balance before adjustment equals the balance of the dowance account at the beginning of the current year (or end of last year) less actual write-offs in the current year