Question

At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts; accounts not yet due= $82000; estimated uncollectible= 5%. What is the total estimated uncollectible accounts at the end of the year?

1) $4100
2) $41000
3) $410000
4) $4100000

Answer 1

The total estimated uncollectible accounts at the end of the year, given the accounts not yet due of $82,000 and an estimated uncollectible rate of 5%, is $4,100.

Step-by-step explanation:

To calculate the total estimated uncollectible accounts at the end of the year for the company, we apply the given uncollectible rate to the accounts not yet due. Given that the accounts not yet due amount to $82,000 and the estimated uncollectible rate is 5%, the calculation would be:
$82,000 \times 0.05 = $4,100.

Therefore, the total estimated uncollectible accounts at the end of the year is $4,100.