Thanks Selby\'s Bike Co. is a wholesaler of motorcycle supplies. An aging counts

Question

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Selby's Bike Co. is a wholesaler of motorcycle supplies. An aging counts receivable on December 31, 2016, and a historical analysis uncollectible accounts in each age category of the com of the percentage of are as follows: Percont Age Balance Uncollectible Interval 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 $1,250,000 500,000 190,000 60,000 36,000 24.000 $2,060,000 nce for doubtful accountss as of December 31, 2016.

Explanation / Answer

Calculation for Allowance for Doubtful Account :-

Allowance For Doubtful Accounts Balance = $76475

Age Interval Balance Uncollectible Percent uncollect Allowance for doubtful account Not past due $1250000 (3/4)% or 0.75% $9375 1-30 Days Past due $500000 3% $15000 31-60 Days Past Due $190000 5% $9500 61-90 Days Past Due $60000 15% $9000 91-180 Days Past Due $36000 40% $14400 Over 180 Days Past Due $24000 80% $19200 Total $2060000 $76475

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