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2nd - Ch 8 Exercises Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of...

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2nd - Ch 8 Exercises Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Class Balance Percent Uncollectible 1/2 % 3 Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due $576,000 63,400 28,800 20,700 15,000 8 18 39 10,900 80 $714,800 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Percent Estimated Uncollectible Age Class Balance Uncollectible Accounts Amount Not past due $576,000 1/2% $ X 1-30 days past due 63,400 3 X 28,800 8 20,700 18 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due 15,000 39 10,900 80 Total $714,800 $

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