Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company'saccounts receivable on December 31 and a historical analysis of the percentage of uncol-lectible accounts in each age category are as follows:PercentUncollectibleAge IntervalBalance$3,250,000Not past due0.8%1-30 days past due31-60 days past due61-90 days past due91-180 days past dueOver 180 days past due1,050,0002.4780,0007.018.0320,000240,00034.0150,00085.0$5,790,000Estimate the proper balance of the allowance for doubtful accounts as of December 31.

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Asked Dec 16, 2019
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Using the data in Exercise 9-11 (attached Q4), assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $28,400 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.

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 uncol-
lectible accounts in each age category are as follows:
Percent
Uncollectible
Age Interval
Balance
$3,250,000
Not past due
0.8%
1-30 days past due
31-60 days past due
61-90 days past due
91-180 days past due
Over 180 days past due
1,050,000
2.4
780,000
7.0
18.0
320,000
240,000
34.0
150,000
85.0
$5,790,000
Estimate the proper balance of the allowance for doubtful accounts as of December 31.
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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 uncol- lectible accounts in each age category are as follows: Percent Uncollectible Age Interval Balance $3,250,000 Not past due 0.8% 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due 1,050,000 2.4 780,000 7.0 18.0 320,000 240,000 34.0 150,000 85.0 $5,790,000 Estimate the proper balance of the allowance for doubtful accounts as of December 31.

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Compute estimated balance of allowance for doubtful accounts ...

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Percent Balance Uncollectible Uncollectible (B) 0.8% 2.4% 7% 18% 34% 85% Age Not past due |1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due Total (A) (A×B) S26,000 $25,200 $54,600 $3,250,000 $1,050,000 $780,000 $320,000 $240,000 S150,000| $57,600 S81,600 $127,500 $372,500

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