Solution-Problem - Estimating Doubtful Accounts

Problem - Estimating Doubtful Accounts

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Reference no: EM132681433

Problem - Estimating Doubtful Accounts

Imperial 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
Not past due	$600,000	14%
1-30 days past due	120,000	2
31-60 days past due	60,000	3
62-90 days past due	45,000	10
91-180 days past due	26,000	40
Over 180 days past due	24,000	40
	$875,000

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

Reference no: EM132681433

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Problem - Estimating Doubtful Accounts

Reference no: EM132681433

Reference no: EM132681433

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