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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 $566,000 1/2 %
130 days past due 62,300 4
31-60 days past due 28,300 8
6190 days past due 20,400 17
91180 days past due 14,700 40
Over 180 days past due 10,800 65
$702,500

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 $566,000 1/2% $fill in the blank 1
1-30 days past due 62,300 4 fill in the blank 2
31-60 days past due 28,300 8 fill in the blank 3
61-90 days past due 20,400 17 fill in the blank 4
91-180 days past due 14,700 40 fill in the blank 5
Over 180 days past due 10,800 65 fill in the blank 6
Total $702,500 $fill in the blank 7

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