what percentage of gross receivable is uncollectible
The .014 is the average percentage of uncollectible accounts receivable during year 1 through year 3. On the other hand, since that data suggest uncollectible accounts are increasing, from 1.25% in year 1 to 1.55% in year 3, the company could estimate its uncollectible accounts receivable to be $255 ($15,000 x .017).