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	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	633,100	373,500	139,300	57,000	31,700	31,600
Conover Industries	18,400					18,400
Keystone Company	17,800				17,800
Moxie Creek Inc.	9,800			9,800
Rainbow Company	10,000		10,000
Swanson Company	24,600	24,600
Totals	713,700	398,100	149,300	66,800	49,500	50,000
Percentage uncollectible		2%	6%	25%	35%	50%
Allowance for Doubtful Accounts