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	$832,000		3/4	%
130 days past due	91,500		3
31-60 days past due	41,600		7
6190 days past due	30,000		18
91180 days past due	21,600		38
Over 180 days past due	15,800		75
	$1,032,500

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

Age Class	Balance	Percent Uncollectible	Estimated Uncollectible Accounts Amount
Not past due	$832,000	3/4%	$
1-30 days past due	91,500	3
31-60 days past due	41,600	7
61-90 days past due	30,000	18
91-180 days past due	21,600	38
Over 180 days past due	15,800	75
Total	$1,032,500		$