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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 the
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 Class Balance Percent Uncollectible Not past due $780,000 3/4 % 1-30 days past due 85,800 4 39,000 6 31-60 days past due 61-90 days past due 18 28,100 20,300 91-180 days past due 39 Over 180 days past due 14,800 80 $968,000 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Percent Uncollectible Estimated Uncollectible Accounts Amount Age Class Balance Not past due $780,000 3/4% 1-30 days past due 85,800 4 31-60 days past due 39,000 6 61-90 days past due 28,100 18 91-180 days past due 20,300 39 Over 180 days past due 14,800 80 Total $968,000
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