Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. estimating doubtful accounts outlaw bike co. is a

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

50.1K

Verified Solution

Question

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students