Fonda 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 as follows:

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

Transcribed Image Text:

Percent Uncollectible Age Interval Balance Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due $567,000 58,000 29,000 20,500 3 15 40 75 15,000 10,500 $700,000