Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions 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

image text in transcribed
image text in transcribed
Instructions 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 Age Interval Balance Percent Uncollectible Not past due $1,440,000 0.75% 1-30 days past due 502,000 3 31-60 days past due 181,900 6 61-90 days past due 62,200 19 91 - 180 days past due 39,800 45 Over 180 days past due 26,500 BO 52,252,400 Estimate what the proper balance of the Allowance for Doubtful Accounts should be as of December 31 nstructions ou Allowance for Doubtful Accounts Estimate an Age Interval Balance Percent Amount Not past due $1,440.000 0.75% 59 1-30 days past due 502,000 3% 31-60 days past due 181,900 6% 61 -90 days past due 62,200 19% 91 - 180 days past due 39,800 45% Over 180 days past due 26,500 80% Total $2,252,400 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Clinical Audit In Mental Health Toward A Multidisciplinary Approach

Authors: John Riordan, Darren Mockler

1st Edition

0471963321, 978-0471963325

More Books

Students also viewed these Accounting questions