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	$874,000	3/4%	$
1-30 days past due	96,100	2%
31-60 days past due	43,700	7%
61-90 days past due	31,500	15%
91-180 days past due	22,700	40%
Over 180 days past due	16,600	70%
Total	$1,084,600		$