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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
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 given below. Age Interval Not past due Balance $818,000 Estimated Uncollectible Accounts Percent 3/4 % Estimated Uncollectible Accounts Amount $6,135 1-30 days past due 90,000 4 31-60 days past due 40,900 9 61-90 days past due 29,400 18 91-180 days past due 21,300 42 Over 180 days past due Total 15,500 $1,015,100 65 3,600 3,681 5,292 8,946 10,075 $37,729 Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $6,790 as of December 31. 88 Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank. Dec. 31
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