Kubota Co. is a wholesaler of office supplies. An aging of the company's accounts receivable on December 31, 2006, 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 31,2006.

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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 $450,000 110,000 51,000 Percent Uncollectible 290 12,500 20 60 7.500