Wiggins Corporation utilizes an accounting software package that is capable of producing a detailed aging of outstanding accounts receivable. Following is the aging schedule as of December 31, 20X2. AMOUNT AGE OUTSTANDING 0 to 30 days $1,200,000 31 to 00 days 700,000 01 to 120 days 200,000 Over 120 days 25,000 Casper Wiggins has owned and operated Wiggins Corporation for many years and has a very good sense of the probability of collection of outstanding receivables, based on an aging analysis. The following table reveals the likelihood of collection: PROBABILITY OF AGE COLLECTION 0 to 30 days 93% 31 to 60 days 90% 01 to 120 days ?5% Over 120 days 50%