Answer:
The correct answer is $71,290.
Explanation:
According to the scenario, the computation for the given data are as follows:
Accounts not yet due = $61,000
Estimated uncollectible = 4%
So, Total uncollectible for Account not yet due = $61,000 × 4% = $2,440
Now, Accounts 1-30 days past due = $27,000
Estimated uncollectible = 15%
So, Total uncollectible for Account 1-30 days past due = $27,000 × 15% = $4,050
Similarly, Accounts more than 30 days past due = $162,000
Estimated uncollectible = 40%
So, Total uncollectible for Account more than 30 days past due = $162,000 × 40% = $64,800
Hence, the total estimated uncollectible accounts = Total uncollectible for Account not yet due + Total uncollectible for Account 1-30 days past due + Total uncollectible for Account more than 30 days past due
By putting the value we get,
= $2,440 + $4,050 + $64,800
= $71,290
