Olivita Inc. is a merchandising business that sells to retail stores all over Canada, owned by Olive Vitanni. This is its 4th year of operations and, due to rapid expansion, Olive is concerned about the accounts receivable balance at year-end. In order to grow the business, all customers have been offered credit terms of 3/10, n/45, which Olive believes results in faster payment of the outstanding accounts receivable. She also believes that it creates higher sales because only her business is offering such favourable (good) credit terms. At December 31, 2021, the current year-end, Olive has the following information about the activities during 2021: Accounts receivable at January 1, 2021 Allowance for doubtful accounts at January 1, 2021 Total gross credit sales during 2021 (there were no cash sales) Cash collected on receivables during 2016 (net of discounts below) Cost of goods sold during 2021 Write-offs during 2021 Sales returns (sales & cost of goods sold respectively) Sales discounts $133,000 -$15,960 $984,750 $925,475 $541,620 $18,490 $17,200, $9,460 $17,085 Do all the required entries for 2021 EXCEPT the estimate for the uncollectable accounts. (The chart is provided for you. NOTE: you have been provided with account names but you will NOT be provided with the account names for the final exam!) If Olive used 12% of total accounts receivable as her estimate of uncollectable accounts, what would her estimated uncollectable accounts be? Estimated uncollectable accounts: Calculations