Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcyde suppli

Question

Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcyde supplies. An aging of the company's accounts receivable on Dacambar 31 and a historical analysis of the pecantage of uncollectible accounts in each age catagory are as follow! Estimate what the proper balance of the allowence for doubtful accounts hould be as of December 31. Outlaw Bika Co. Ectimation of Uncollectibla Accounts December 31 Balance Percent Uncolectbl Etimated Uncolectible Accounts Amount $832,000 1/2% 91.900 4% Age Class Not pest due 1-30 days past due 31-60 days past duc 1,600 6% 61-90 dayspast due 30,000 18% 91-180 dey, pet due 21.600 4246 Over 180 days past due 15,800 80% Total $1,032,500 Previous Next Check My Work Save and Exit Subrnit Assignment for Grading

Explanation / Answer

Outlaw Bike Co.

Estimation of Uncollectible Accounts

December 31

Balance of the Allowance for doubtful account should be as of December 31 = $ 37,428

Age class Balance Percent Uncollectible Estimated Uncollectible Accounts Amount Not past due $832,000 1/2% $4,160 1 - 30 days past due $91,500 4% $3,660 31 - 60 days past due $41,600 6% $2,496 61 - 90 days past due $30,000 18% $5,400 91 - 180 days past due $21,600 42% $9,072 Over 180 days past due $15,800 80% $12,640 Total $1,032,500 $37,428

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