Reference no: EM131778927

Question - Kubota Co. is a wholesaler of office supplies. An aging of the company's accounts receivable on December 31, 2006, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Age Interval Balance Percent Uncollectible

Not past due $450,000 2%

1-30 days past due 110,000 4

31-60 days past due 51,000 6

61-90 days past due 12,500 20

91-180 days past due 7,500 60

Over 180 days past due 5,500 80

$636,500

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2006.