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Category > Accounting Posted 25 Sep 2017 My Price 5.00

Traditional Bikes Co

EX 8-11 Estimating doubtful accounts

Traditional Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31, 2014, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

 

Balance

Percent Uncollectible

Age Interval

$ 740,000

½%

Not past due

390,000

2

1–30 days past due

85,000

4

31–60 days past due

28,000

14

61–90 days past due

42,000

32

91–180 days past due

15,000

80

Over 180 days past due

$1,300,000

  

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2014.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 10:09 PM My Price 5.00

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