Estimating Doubtful Accounts

Imperial Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2016, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.

Imperial Bikes Co.
Estimation of Uncollectible Accounts
December 31, 2016
Age Interval	Balance	Estimated Uncollectible Accounts Percent	Estimated Uncollectible Accounts Amount
Not past due	$480000	3/4%	$
1-30 days past due	52800	3%
31-60 days past due	24000	6%
61-90 days past due	17300	17%
91-180 days past due	12500	41%
Over 180 days past due	9100	80%
Total	$595700		$