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Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An...

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Accounting

Estimating Doubtful Accounts

Outlaw Bike Co $.$ is a wholesaler of motorcycle supplies. An aging of the companys 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

Not past due $ $892, 000 3 / 4 %$

$1 30$ days past due $285, 000 1$

$31 - 60$ days past due $101, 000 8$

$61 90$ days past due $63, 000 16$

$91 180$ days past due $43, 100 50$

Over $180$ days past due $17, 700 80$

$ $1, 401, 800$

Estimate what the proper balance of the allowance for doubtful accounts should be as of December $31 .$

Age Class

Balance Percent

Uncollectible Estimated Uncollectible

Accounts Amount

Not past due $ $892, 000 3 / 4 %$ $fill in the blank $1$

$1 - 30$ days past due $285, 000 1$ fill in the blank $2$

$31 - 60$ days past due $101, 000 8$ fill in the blank $3$

$61 - 90$ days past due $63, 000 16$ fill in the blank $4$

$91 - 180$ days past due $43, 100 50$ fill in the blank $5$

Over $180$ days past due $17, 700 80$ fill in the blank $6$

Total $ $1, 401, 800$ $fill in the blank $7$

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