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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

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 Uncollectable
Not past due $902,000 3/4%
1-30 days past due $292,000 1
31-60 days past due $98,500 8
61-90 days past due $68,000 16
91-180 days past due $44,700 50
Over 180 days past due

$15,500

80

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

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