Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An...
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Accounting
Estimating Doubtful Accounts
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 Class
Balance
Percent Uncollectible
Not past due
$566,000
1/2
%
130 days past due
62,300
4
31-60 days past due
28,300
8
6190 days past due
20,400
17
91180 days past due
14,700
40
Over 180 days past due
10,800
65
$702,500
Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.
Age Class
Balance
Percent Uncollectible
Estimated Uncollectible Accounts Amount
Not past due
$566,000
1/2%
$fill in the blank 1
1-30 days past due
62,300
4
fill in the blank 2
31-60 days past due
28,300
8
fill in the blank 3
61-90 days past due
20,400
17
fill in the blank 4
91-180 days past due
14,700
40
fill in the blank 5
Over 180 days past due
10,800
65
fill in the blank 6
Total
$702,500
$fill in the blank 7
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