Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the...
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Estimating Doubtful Accounts Performance 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 the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Estimated Uncollectible Accounts Percent Accounts Amount Age Interval Balance Not past due $852,000 1/2% 1-30 days past due 93,700 31-60 days past due 42.600 6 61-90 days past due 30,700 18 91-180 days past due 22,200 41 Over 180 days past due 16,200 80 Total $1,057,400 Estimating Doubtful Accounts Performance 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 the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Estimated Uncollectible Accounts Percent Accounts Amount Age Interval Balance Not past due $852,000 1/2% 1-30 days past due 93,700 31-60 days past due 42.600 6 61-90 days past due 30,700 18 91-180 days past due 22,200 41 Over 180 days past due 16,200 80 Total $1,057,400
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