Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2nd - Ch 8 Exercises Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on

image text in transcribed

2nd - Ch 8 Exercises Estimating Doubtful Accounts 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 1/2 % 3 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 $576,000 63,400 28,800 20,700 15,000 8 18 39 10,900 80 $714,800 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Percent Estimated Uncollectible Age Class Balance Uncollectible Accounts Amount Not past due $576,000 1/2% $ X 1-30 days past due 63,400 3 X 28,800 8 20,700 18 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due 15,000 39 10,900 80 Total $714,800 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Alan Melville

2nd Edition

0273634399, 978-0273634393

More Books

Students also viewed these Accounting questions

Question

=+ Describe the components. Which month was left out? Why?

Answered: 1 week ago

Question

Is having a positive self-concept really all that important?

Answered: 1 week ago