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Using an Aging Schedule to Account for Bad Debts Carter Company sells on credit with terms of n/30. For the $500,000 of accounts at the
Using an Aging Schedule to Account for Bad Debts Carter Company sells on credit with terms of n/30. For the $500,000 of accounts at the end of the year that are not overdue, there is a 90% probability of collection. For the $200,000 of accounts that are less than a month past due, Carter estimates the likelihood of collection going down to 70%. The probability of collecting the $100,000 of accounts more than a month past due is estimated to be 25%
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