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

Performance Bike Co.
Estimation of Uncollectible Accounts
December 31
Age Interval	Balance	Estimated Uncollectible Accounts Percent	Estimated Uncollectible Accounts Amount
Not past due	$664,000	1/2%	$
1-30 days past due	73,000	4
31-60 days past due	33,200	6
61-90 days past due	23,900	15
91-180 days past due	17,300	40
Over 180 days past due	12,600	80
Total	$824,000		$