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Sullivan Co.'s accounts receivable show the following balances by age:
Age of Receivable
Balance
0-30 days
$600,000
31-60 days
175,000
61-120 days
70,000
more than 120 days
10,000
The credit balance in the allowance for uncollectible accounts is $2,500. Sullivan Co. uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.7%; 31-60 days, 1.2%; 61-120 days, 11%; and more than 120 days, 65%.
Required:
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