estimating doubtful accounts

Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Balance Accounts Percent Age Interval Estimated Uncollectible Accounts Amount Not past due $504,000 1/2% 1-30 days past due 55,400 4 31-60 days past due 25,200 9 61-90 days past due 18,100 16 91-180 days past due 13,100 40 Over 180 days past due 9,600 70 Total $625,400