Williamson Distributors separates its accounts receivable into three age groups for purposes of estimating the percentage of

Question:

Williamson Distributors separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts.

1. Accounts not yet due = $30,000; estimated uncollectible = 5%.

2. Accounts 1-30 days past due = $10,000; estimated uncollectible = 20%.

3. Accounts more than 30 days past due = $4,000; estimated uncollectible = 30%.

Compute the total estimated uncollectible accounts.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...