Estimating Doubtful Accounts

Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys 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	$782,000		1/2	%
130 days past due	86,000		4
31-60 days past due	39,100		9
6190 days past due	28,200		14
91180 days past due	20,300		41
Over 180 days past due	14,900		75
	$970,500

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

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Percent Estimated Uncollectible Accounts Amount Age Class Balance Uncollectible Not past due $782,000 1/2% 1-30 days past due 86,000 4 31-60 days past due 39,100 9 61-90 days past due 28,200 14 91-180 days past due 20,300 41 Over 180 days past due 14,900 75 Total $970,500 LA 100000