Proper balance of the allowance for doubtful accounts


Problem:

Please help with the following problem.

Age Interval Balance Percent Uncollectible
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
$700,000

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31,2010.

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Accounting Basics: Proper balance of the allowance for doubtful accounts
Reference No:- TGS01895325

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