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
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section14.1: Uncollectible Accounts Receivable
Problem 1WT
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