RLF 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. Bad debts as a percentage of gross credit sales have risen from the 2.7% provided in past years to about 5.3% in the current year. The companys Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the report reproduced below. The fact that some credit accounts will prove uncollectible is normal. Annual bad debt write-offs have been 2.7% of gross credit sales over the past 5 years. During the last fiscal year, this percentage increased to slightly less than 5.3%. The current Accounts Receivable balance is $1,200,000. The condition of this balance in terms of age and probability of collection is as follows.

RLF COMPANY Accounts Receivable Collections May 31, 2017
Proportion of Total			Age Categories		Probability of Collection
60%			not yet due		98%
22%			less than 30 days past due		96%
9%			30 to 60 days past due		94%
5%			61 to 120 days past due		91%
2%			121 to 180 days past due		75%
1%			over 180 days past due		30%

Allowance for Doubtful Accounts had a credit balance of $27,500 on June 1, 2016. RLF has provided for a monthly bad debt expense accrual during the current fiscal year based on the assumption that 5.3% of gross credit sales will be uncollectible. Total gross credit sales for the 20162017 fiscal year amounted to $2,500,000. Write-offs of bad accounts during the year totaled $112,000. Collapse question part (a) Prepare an accounts receivable aging schedule for RLF Company using the age categories identified in the controllers report to the Finance Committee showing the following. (Round Proportion of Total to 3 decimal places, e.g 50% is .500 and Probability of Non-Collection to 2 decimal places e.g. 50% is 0.50.) (1) The amount of accounts receivable outstanding for each age category and in total. (2) The estimated amount that is uncollectible for each category and in total.

RLF COMPANY Accounts Receivable Aging Schedule May 31, 2017
Age Categories		Proportion of Total		Amount in Category		Probability of Non- Collection		Estimated Uncollectible Amount

Not yet due 0.600 0.02

Less than 30 days past due 0.220 0.04

30 to 60 days past due 0.090 0.06

61 to 120 days past due 0.050 0.09 121 to 180 days past due 0.025 0.25

Over 180 days past due 0.015 0.70

Total 1

I would like to know how the third and fifth column is calculated, detailed calculation is need. Really appreciate for any help.