Question: Williamson Distributors separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. Accounts not yet due = $28,000;

Williamson Distributors separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts.

  1. Accounts not yet due = $28,000; estimated uncollectible = 5%.

  2. Accounts 130 days past due = $9,800; estimated uncollectible = 20%.

  3. Accounts more than 30 days past due = $3,800; estimated uncollectible = 30%.

Compute the total estimated uncollectible accounts.

Age Group Estimated Amount Uncollectible
Not Due Yet
1-30 days past due
More than 30 days past due
Total

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