Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys 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

$1,140,000

0.60%

1 - 30 days past due

516,500

3

31 - 60 days past due

182,000

5

61 - 90 days past due

54,900

16

91 - 180 days past due

36,500

38

Over 180 days past due

23,900

85

Estimate what the proper balance of the Allowance for Doubtful Accounts should be as of December 31.

		Estimated Uncollectible Accounts
Age Interval	Balance	Percent	Amount
Not past due	$1,140,000	0.60%
1 - 30 days past due	516,500	3%
31 - 60 days past due	182,000	5%
61 - 90 days past due	54,900	16%
91 - 180 days past due	36,500	38%
Over 180 days past due	23,900	85%
Total	$1,953,800

$1,953,800