Imperial Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company€™s accounts receivable on December 31, 2012, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31,2012.

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Percent Age Interval 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 Balance Uncollectible V49% $600,000 120,000 60,000 45,000 26,000 24,000 $875,000 10 40 75