Compute the required balance of the Allowance for Uncollectible Accounts for the following receivables:
|
Accounts |
Age |
Probability |
|
Receivable |
(months) |
of Collection |
|
$180,000 |
Less than 1 |
95% |
|
90,000 |
1-3 |
85 |
|
39,000 |
3-6 |
75 |
|
12,000 |
6-9 |
35 |
|
2,250 |
9-12 |
10 |