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 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 Balance Estimated Uncollectible Accounts Percent Estimated Uncollectible Accounts Amount Age Interval Not past due 3/4% $674,000 1-30 days past due 74,100 4 31-60 days past due 33,700 8 61-90 days past due 24,300 16 91-180 days past due 17,500 41 12,800 Over 180 days past due 65 $836,400 Total
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 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 Balance Estimated Uncollectible Accounts Percent Estimated Uncollectible Accounts Amount Age Interval Not past due 3/4% $674,000 1-30 days past due 74,100 4 31-60 days past due 33,700 8 61-90 days past due 24,300 16 91-180 days past due 17,500 41 12,800 Over 180 days past due 65 $836,400 Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 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
Balance Estimated Uncollectible Accounts Percent
Estimated Uncollectible Accounts Amount
Age Interval
Not past due
3/4%
$674,000
1-30 days past due
74,100
4
31-60 days past due
33,700
8
61-90 days past due
24,300
16
91-180 days past due
17,500
41
12,800
Over 180 days past due
65
$836,400
Total
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