Estimating Doubtful Accounts

Imperial Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2014, 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, 2014

Imperial Bikes Co.

Estimation of Uncollectible Accounts

December 31, 2014

Age Interval

Balance

Estimated Uncollectible Accounts Percent

Estimated Uncollectible Accounts Amount

Not past due

$852,000

1/2 %

$

1-30 days past due

93,700

2 %

31-60 days past due

42,600

7 %

61-90 days past due

30,700

15 %

91-180 days past due

22,200

40 %

Over 180 days past due

16,200

80 %

Total

$1,057,400

$