Newbury Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on

Newbury Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2012, 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                         $667,000                            ½%

1-30 Days Past Due                $158,000                            2%

31-60 Days Past Due              $54,000                             5%

61-90 Days Past Due              $20,500                            15%

91-180 Days Past Due           $15,000                              40%

Over 180 Days Past Due            $10,500                           75%

                                             $925,000

Required:

Estimate what the balance of the allowance for doubtful accounts should be as of December 31, 2012.