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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entry for uncollectible accounts
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