Nazim Ltd. (NL) allows 30 days credit to all its customers. It uses allowance method...
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Nazim Ltd. (NL) allows 30 days credit to all its customers. It uses allowance method to record bad debt expenses. NL estimates that 98% of the amounts within 30 day, 95% of 1 - 60 day past dues, 90% of 61 - 90 days past dues and 80% of the over 90 days past dues will be collected. An analysis of account receivable indicates that
| Balances invoiced in | Amount outstanding $ |
| December | 500,000 |
| November | 250,000 |
| October | 175.000 |
| September | 225,000 |
| August | 186,000 |
| July | 95,000 |
| June and prior months | 125,000 |
The amount estimated to be uncollectible is:
A. $134,950
B. $144,650
C. $147,350
D. $143,950
E. $153,850
F. $166,200
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