Estimating Uncollectible Accounts Expense The allowance method uses two ways to estimate the amount debited to Uncollectible Accounts Expense 1. Estimate based on a percentage of sales If credit sales for the period are $300,000 and it is estimated that 1% will be uncollectible, the Uncollectible Accounts Expense is $3, 000. 2. Estimate based on analysis of receivables If it is estimated that $3, 390 of the receivables will be uncollectible and the allowance for Uncollectible Accounts is $510, the Uncollectible Accounts Expense is $2, 880( $3, 390-$510). c7-8C7 - 8 Estimating Uncollectible Accounts Expense 1. Estimate based on a percentage of sales. If credit sales for the period are $300,000 and it is estimated that 1% will be uncollectible, the Uncollectible Accounts Expense is $3,000. 2. Estimate based on analysis of receivables. If it is estimated that $3,390 of the receivables will be uncollectible and the Allowance for Uncollectible Accounts is $510, the Uncollectible Accounts Expense is $2,880 ($3,390 – $510). The allowance method uses two ways to estimate the amount debited to Uncollectible Accounts Expense