Reference no: EM13257537
Renegade Co. is a wholesaler of motorcycle supplies. Anaging of the company's accounts receivable on December 31,2008, and a historical analysis of the percentage of uncollectibleaccounts in each age category are as follows:
AgeInterval Balance Percent Uncollectible
Not pastdue $400,000 1%
1-30 days pasdue 80,000 2
31-60 days pastdue 18,000 5
61-90 days pastdue 12,500 10
91-180 days pastdue 6,000 70
Over 180 days pastdue 2,500 90
$519,000
Estimate what the proper balance of the allowance fordoubtful accounts should be as of December 31, 2008.
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Case study of renegade company
: Renegade Co. is a wholesaler of motorcycle supplies. Anaging of the company's accounts receivable on December 31,2008, and a historical analysis of the percentage of uncollectibleaccounts in each age category are as follows:
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