Rough Stuff is a distributor of large rocks. It sells on credit to commercial landscaping

companies and extends terms that require customers to pay in 60 days. For accounts that are not

overdue, Rough Stuff has found that there is a 90% probability of collection. For accounts up to

one month past due, the likelihood of collection decreases to 75%. If accounts are between one

and two months past due, the probability of collection is 65%, and if an account is over two

months past due, Rough Stuff estimates only a 25% chance of collecting the receivable. On

December 31, 2017, the balance in Allowance for Doubtful Accounts