Estimating Allowance for Doubtful Accounts

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

Age Class	Percent Uncollectible
Not past due	2	%
1-30 days past due	6
31-60 days past due	20
61-90 days past due	30
Over 90 days past due	45

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	733,400	432,700	161,300	66,000	36,700	36,700
Conover Industries	14,700					14,700
Keystone Company	22,000				22,000
Moxie Creek Inc.	5,300			5,300
Rainbow Company	8,300		8,300
Swanson Company	24,300	24,300
Totals	808,000	457,000	169,600	71,300	58,700	51,400
Percentage uncollectible		2%	6%	20%	30%	45%
Allowance for Doubtful Accounts