Estimating doubtful accounts Obj. 4 Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company’s 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 $ 892,000 ¾%

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.

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