Excerpts from Pekola Company's annual report are provided below:

1. Are estimated uncollectibles increasing or decreasing as percentage of revenues?
2. What is meant by provision for uncollectibles? Why is this reported in the notes?
3. What amount of write-offs occurred during 2014?
4. What was the cash collected on accounts receivables during 2014?
5. What would you do with the provision for uncollectibles when preparing the statement of cash flows (indirect)? Why?

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Income Statement Revenues (all on account) Net income Balance Sheet Current Assets: Receivables, less allowance for uncollectibles of $338 and $308, respectively Footnotes Provision for uncollectibles 2014 2013 S 17,154 S 15,998 6,606 S 2,296 3,052 S 3,078 385 S 355 %24 %24