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	$890,000	3/4%	$
1-30 days past due	97,900	2%
31-60 days past due	44,500	6%
61-90 days past due	32,000	16%
91-180 days past due	23,100	40%
Over 180 days past due	16,900	65%
Total	$1,104,400		$