Based on the provided customer account balances and estimated uncollectible percentages, the document estimates the uncollectible accounts amount for each age interval to calculate the total allowance for doubtful accounts as of December 31, 2014. It lists the account balances in different aging categories, from current to over 180 days past due, and the estimated uncollectible percentage for each category, ranging from 0.5% to 80%, to determine the proper balance sheet amount for allowance for doubtful accounts.

1. Given the info below, please estimate the Uncollectible Accounts Amount (fourth column
on the right)
Estimate what the proper balance of the allowance for doubtful accounts should be as of
December 31, 2014.
Age Interval Balance
Estimated Uncollectible
Accounts Percent
Estimated Uncollectible
Accounts Amount
Not past due $740,000 0.5% $
1-30 days past
due
390,000 2
31-60 days past
due
85,000 4
61-90 days past
due
28,000 14
91-180 days past
due
42,000 32
Over 180 days
past due
15,000 80
Total $1,300,000 $
Solution
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