Selby's Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2016, 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, 2016.

Transcribed Image Text:

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 $1,250,000 500,000 190,000 60,000 36,000 24,000 $2,060,000 15 40 80