Easy Rider 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 | $1,850,000 | 1% |
| 1–30 days past due | 7,50,000 | 2 |
| 31–60 days past due | 1,00,000 | 6 |
| 61–90 days past due | 60,000 | 14 |
| 91–180 days past due | 45,000 | 60 |
| Over 180 days past due | 25,000 | 90 |
| $2,830,000 |
.
Estimate what the balance of Allowance for Doubtful Accounts should be as of December 31, 20Y3.
Darshita Changed status to publish August 13, 2020
| Estimated Uncollectible Accounts | |||
| Age Interval | Balance | Percent | Amount |
| Not past due | $1,950,000 | 1% | $18,500 |
| 1–30 days past due | 7,50,000 | 2 | 15,000 |
| 31–60 days past due | 1,00,000 | 6 | 6,000 |
| 61–90 days past due | 60,000 | 14 | 8,400 |
| 91–180 days past due | 45,000 | 60 | 27,000 |
| Over 180 days past due | 25,000 | 90 | 22,500 |
| Total | $2,830,000 | $97,400 |
Darshita Changed status to publish August 13, 2020
