Reference no: EM13388956

Newbury Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2012, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Age interval                           Balance                             Percent Uncollectible

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Not Past Due                         $667,000                            ½%

1-30 Days Past Due                $158,000                            2%

31-60 Days Past Due              $54,000                             5%

61-90 Days Past Due              $20,500                            15%

91-180 Days Past Due           $15,000                              40%

Over 180 Days Past Due        $10,500                           75%

                                               $925,000

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Required:

Estimate what the balance of the allowance for doubtful accounts should be as of December 31, 2012.