Thanks Selbys Bike Co is a wholesaler of motorcycle supplies

Thanks

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.

Solution

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