Estimating Doubtful Accounts

Outlaw 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:

Age Class Balance Percent Uncollectible

Not past due $$892,0003/4\%$

$130$ days past due $285,0001$

$31-60$ days past due $101,0008$

$6190$ days past due $63,00016$

$91180$ days past due $43,10050$

Over $180$ days past due $17,70080$

$$1,401,800$

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

Age Class

Balance Percent

Uncollectible Estimated Uncollectible

Accounts Amount

Not past due $$892,0003/4\%$ $fill in the blank $1$

$1-30$ days past due $285,0001$ fill in the blank $2$

$31-60$ days past due $101,0008$ fill in the blank $3$

$61-90$ days past due $63,00016$ fill in the blank $4$

$91-180$ days past due $43,10050$ fill in the blank $5$

Over $180$ days past due $17,70080$ fill in the blank $6$

Total $$1,401,800$ $fill in the blank $7$