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 $558,000 1/2% 1-30 days past due 61,400 2 31-60 days past due 27,900 6 61-90 days past due 20,100 18 91-180 days past due 14,500 40 Over 180 days past due 10,600 65 $692,500 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Estimated Uncollectible Accounts Uncollectible Accounts Estimated Age Class Balance Percent Amount Not past due $558,000 1/2% 1-30 days past due 61,400 2 31-60 days past due 27,900 6 61-90 days past due 20,100 18 91-180 days past due 14,500 40 Over 180 days past due 10,600 65 $692,500 Total Previous Next