E6-7 Newbury Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2012, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Estimate what the balance of the allowance for doubtful accounts should be as of December 31, 2012.

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 $667,000 158,000 54,000 20,500 15,000 10,500 $925,000 Percent Uncollectible 15 40 75