Estimating Doubtful Accounts Assignment

Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.

Performance Bike Co. Estimation of Uncollectible Accounts December 31 Age Interval Balance Estimated Uncollectible Accounts Percent Estimated Uncollectible Accounts Amount Not past due $578,000 3/4% 1-30 days past due 63,600 3 31-60 days past due 28,900 9 61-90 days past due 20,800 16 91-180 days past due 47 15,000 Over 180 days past due 11,000 65 Total $717,300. Get Accounting homework help today

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