Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of $589,000. Of this amount, $79,000 remains receivable at the end of the year. An aging schedule as of December 31, 2021, is provided below.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $ 40,000 4%
0-90 days past due 16,000 20%
91-180 days past due 11,000 25%
More than 180 days past due 13,000 80%
Total $ 80,000
Calculate the allowance for uncollectible accounts.
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