Estimating doubtful accounts OBJ. 4 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:

Age Interval Balance Percent Uncollectible Not past due $1,250,000 ¾%

1–30 days past due 500,000 3 31–60 days past due 190,000 5 61–90 days past due 60,000 15 91–180 days past due 36,000 40 Over 180 days past due 24,000 80

$2,060,000 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.