Williamson Distributors separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. 1. Accounts not yet due = $40,000; estimated uncollectible = 5%. 2. Accounts 1–30 days past due = $11,000; estimated uncollectible = 20%. 3. Accounts more than 30 days past due = $5,000; estimated uncollectible = 30%. Compute the total estimated uncollectible accounts.

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 = $40,000; estimated uncollectible = 5%.
2. Accounts 1–30 days past due = $11,000; estimated uncollectible = 20%.
3. Accounts more than 30 days past due = $5,000; estimated uncollectible = 30%.
Compute the total estimated uncollectible accounts.

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