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Estimating Allowance for Doubtful Accounts
Kirchhoff Industries has a past history of uncollectible accounts, as shown below.
| Age Class | Percent Uncollectible |
| Not past due | 2 | % |
| 1-30 days past due | 6 | |
| 31-60 days past due | 20 | |
| 61-90 days past due | 30 | |
| Over 90 days past due | 45 | |
Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below.
| Kirchhoff Industries |
| Aging-of-Receivables Schedule |
| |
| Customer | Balance | Not Past Due | 1-30 Days Past Due | 31-60 Days Past Due | 61-90 Days Past Due | Over 90 Days Past Due |
| Subtotals | 733,400 | 432,700 | 161,300 | 66,000 | 36,700 | 36,700 |
| Conover Industries | 14,700 | | | | | 14,700 |
| Keystone Company | 22,000 | | | | 22,000 | |
| Moxie Creek Inc. | 5,300 | | | 5,300 | | |
| Rainbow Company | 8,300 | | 8,300 | | | |
| Swanson Company | 24,300 | 24,300 | | | | |
| Totals | 808,000 | 457,000 | 169,600 | 71,300 | 58,700 | 51,400 |
| Percentage uncollectible | | 2% | 6% | 20% | 30% | 45% |
| Allowance for Doubtful Accounts | | | | | | |
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