Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. outlaw bike co. is a wholesaler of motorcycle supp

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

50.1K

Verified Solution

Question

Accounting

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 Interval 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.

Estimate what the proper balance of the Allowance for Doubtful Accounts should be as of December 31.

Estimated Uncollectible Accounts
Age Interval Balance Percent Amount
Not past due $892,000 0.75
1 - 30 days past due 285,000 1.00
31 - 60 days past due 101,000 8.00
61 - 90 days past due 63,000 16.00
91 - 180 days past due 43,100 50.00
Over 180 days past due 17,700 80.00
Total $1,401,800

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