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 the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Age Interval Balance Accounts Percent Not past due $888,000 1/2% 1-30 days past due 97,700 2 31-60 days past due 44,400 7 61-90 days past due 32,000 18 91-180 days past due 23,100 42 Over 180 days past due 16,900 65 Total $1,102,100 Estimated Uncollectible Accounts Amount
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 the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Age Interval Balance Accounts Percent Not past due $888,000 1/2% 1-30 days past due 97,700 2 31-60 days past due 44,400 7 61-90 days past due 32,000 18 91-180 days past due 23,100 42 Over 180 days past due 16,900 65 Total $1,102,100 Estimated Uncollectible Accounts Amount
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 10SPA: AGING ACCOUNTS RECEIVABLE An analysis of the accounts receivable of Johnson Company as of December...
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