Using an Aging Schedule to Account for Bad Debts Sparkle Jewels distributes fine stones. It sells on credit to retail jewelry stores and extends terms that require the stores to pay in 60 days. For accounts that are not overdue, Sparkle has found that there is a 90% probability of collection. For accounts up to one month past due, the likelihood of collection decreases to 80%. If accounts are between one and two months past due, the probability of collection is 60%, and if an account is over two months past due, Sparkle Jewels estimates only a 35% chance of collecting the receivable. On December 31, 2016, the credit balance in Allowance for Doubtful Accounts is $13,200. The amounts of gross receivables by age on this date are as follows: Category Current Past due: Amount $182,000 One to two months Less than one month 41,500 22,400 1,200 Over two months Required: 1. Prepare a schedule to estimate the amount of uncollectible accounts at December 31, 2016. Sparkle Jewels Aging Schedule to Account for Bad Debts Category Amount Estimated Percent Uncollectible $182,000 10 % Estimated Amount Uncollectible 18,200 Current Past due: Less than one month 41,500 20 % One to two months 22,400 40 % Over two months 1,200 65 % 8,300 8,960 780 Totals $247,100 $ 36,240