Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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:
Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.
Outlaw Bike Co. | |||
Estimation of Uncollectible Accounts | |||
December 31 | |||
Age Class | Balance | Percent Uncollectible | Estimated Uncollectible Accounts Amount |
Not past due | $864,000 | 1/2% | $fill in the blank 1 |
1-30 days past due | 95,000 | 3% | fill in the blank 2 |
31-60 days past due | 43,200 | 8% | fill in the blank 3 |
61-90 days past due | 31,100 | 16% | fill in the blank 4 |
91-180 days past due | 22,500 | 38% | fill in the blank 5 |
Over 180 days past due | 16,400 | 75% | fill in the blank 6 |
Total | $1,072,200 | $fill in the blank 7 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started