Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on

Question:

Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's on December 31 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 ................ $3,250,000 ......................... 0.8%
1-30 days past due ..........1,050,000 ............................2.4
31-60 days past due .........780,000 ............................ 7.0
61-90 days past due .........320,000 ...........................18.0
91-180 days past due ........240,000 ...........................34.0
Over 180 days past due ......150,000 ...........................85.0
................................ $5,790,000...............................
Estimate the proper balance of the allowance for doubtful accounts as of December 31?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...