Question

Estimating Doubtful Accounts Sun Valley Rider International is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Percent Age Interval Balance Uncollectible Not past due $426,000 2 % 1-30 days past due 158,800 5 31-60 days past due 65,000 20 61-90 days past due 36,100 30 91-180 days past due 36,100 45 More than 180 days past due 11,200 65 $733,200

Answer 1

Answer:
Age interval	Balance (A)	Percent uncollectible (B)	Estimated Uncollectible Amount (A x B)
Not past due	$ 426,000	2%	$ 8,520
1-30 days past due	$ 158,800	5%	$ 7,940
31-60 days past due	$ 65,000	20%	$ 13,000
61- 90 days past due	$ 36,100	30%	$ 10,830
91- 180 days past due	$ 36,100	45%	$ 16,245
More than 180 days past due	$ 11,200	65%	$ 7,280
Total			$ 63,815