Estimating Allowance for Doubtful Accounts

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

Age Class Percent Uncollectible

Not past due 1 %

1-30 days past due 5

31-60 days past due 25

61-90 days past due 35

Over 90 days past due 50

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

Quigley 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

728,500

429,800

160,300

65,600

36,400

36,400

Beltran Industries

17,600

17,600

Doodle Company

15,000

15,000

La Corp Inc.

9,400

9,400

VIP Sales Company

11,000

11,000

We-Go Company

25,300

25,300

Totals

806,800

455,100

171,300

75,000

51,400

54,000

Percentage uncollectible

1%

5%

25%

35%

50%

Allowance for Doubtful Accounts