Crell Computers categorizes its accounts receivable into four age groups for purposes of estimating its allowance for

Question:

Crell Computers categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.
1. Accounts not yet due = $60,000; estimated uncollectible = 5%.
2. Accounts 1–30 days past due = $15,000; estimated uncollectible = 10%.
3. Accounts 31–60 days past due = $10,000; estimated uncollectible = 20%.
4. Accounts more than 60 days past due = $5,000; estimated uncollectible = 30%. What should be the balance in Crell’s allowance for 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...

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