Intimacy Mattress Company has a past history of uncollectible accounts, as shown below. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule you completed in Exercise 8-4.

Percentage

Age Class Uncollectible

Not past due ................. 1%

1–30 days past due ................ 4

31–60 days past due .............. 8

61–90 days past due ...............20

Over 90 days past due ..............40