$94$

Estimating Doubtful Accounts

Performance 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:

Estimate the proper balance of the allowance for doubtful accounts should be as of December $31.$

Performance Bike Co$.$

Estimation of Uncollectible Accounts

December $31$

$\backslash$table$[[$Age Interval,Balance,$\backslash$table$[[$Estimated Uncollectible$],[$Accounts Percent$]],\backslash$table$[[$Estimated Uncollectible$],[$Accounts Amount$]]],[$Not past due,$$712,000,\frac{3}{4}\%,$$