Estimating Doubtful Accounts Performance 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 eadch 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 $608,000 3/4% 1-30 days past due 66,900 2 31-60 days past due 30,400 61-90 days past due 21,900 17 91-180 days past due 15,800 38 Over 180 days past due 11,600 65 Total $754,600 $4
Estimating Doubtful Accounts Performance 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 eadch 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 $608,000 3/4% 1-30 days past due 66,900 2 31-60 days past due 30,400 61-90 days past due 21,900 17 91-180 days past due 15,800 38 Over 180 days past due 11,600 65 Total $754,600 $4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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