Estimating Allowance for Doubtful Accounts

Kirchhoff Industries has a past history of uncollectible accounts, as shown below.

Age Class	Percent Uncollectible
Not past due	1%
1-30 days past due	6
31-60 days past due	25
61-90 days past due	35
Over 90 days past due	50

Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below.

Kirchhoff Industries
Aging of Receivables Schedule
Customer	Balance	Not Past Due	1-30 Days Past Due	31-60 Days Past Due	61-90 Days Past Due	Over 90 Days Past Due
Subtotals	615,000	362,900	135,300	55,400	30,800	30,600
Conover Industries	13,600					13,600
Keystone Company	15,800				15,800
Moxie Creek Inc.	5,300			5,300
Rainbow Company	8,800		8,800
Swanson Company	26,100	26,100
Totals	684,600	389,000	144,100	60,700	46,600	44,200
Percentage uncollectible		1%	6%	25%	35%	50%
Allowance for Doubtful Accounts