onda Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2010, and a historical analysis of the percentage of uncollectible accounts in each age category are given below.
Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2010.
Age Interval Balance Estimated
Uncollectible Accounts
Percent Estimated
Uncollectible Accounts
Amount
Not past due $567,000 1/2% $
1-30 days past due 58,000 3
31-60 days past due 29,000 7
61-90 days past due 20,500 15
91-180 days past due 15,000 40
Over 180 days past due 10,500 75
Total $700,000 $