Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle suppl

Question

Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a 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. Outiaw Bike Co. Estimation of Uncollectible Accounts Age Class Not past due 1-30 days past de 98 800 31-60 days past due 44,900 61-90 days past due 22,300 91-180 days past due 23,300 Over 180days past due 17,100 Balance Percent Uncollectible Estimated Uncollectible Accounts Amount $898,000 3/4% 4% 7% 14% 40% 75% Total $1,114,400

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Age Class Balance Percent Uncollectible Estimated uncollectible accounts amount Not past due               898,000.00 0.75%                    6,735.00 1-30 days past due                 98,800.00 4%                    3,952.00 31-60days past due                 44,900.00 7%                    3,143.00 61-90days past due                 32,300.00 14%                    4,522.00 91-180 days past due                 23,300.00 40%                    9,320.00 Over 180 days past due                 17,100.00 75%                  12,825.00 Total           1,114,400.00                  40,497.00

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