Question - On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent, Group b 3 percent, Group c 10 percent, Group d 20 percent, Group e 50 percent.
The allowance for doubtful accounts before adjustments at December 31 showed a credit balance of $4,700.
Compute the estimated amount of uncollectible accounts based on the above classification by age groups?