Problem: Elway Company ages its accounts receivable to estimate bad debts for financial statement purposes. President Elway is at a meeting with creditors and needs to know his total accounts receivable balance. Unfortunately, Elway picked up the wrong computer report and has, instead, a summary printout of the company's estimated bad debts as follows:
Age of Receivable Bad Debt % uncollectible
0-30 days $ 1,750 0.5%
31-60 days 1,500 1.5%
61-120 days 4,000 8.0%
more than 120 days 17,500 70.0%
Calculate the accounts receivable balance based on Elway's bad debt summary.