The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2018: $\begin{array}{crr}&&\text { Estimated \% }\\text { Days Outstanding }&\text { Amount }&\text { Uncollectible }\
\hline0-30 & \$ 420,000 & 2 \% \
31-60 & 140,000 & 5 \% \
61-120 & 100,000 & 10 \% \
\text { Over } 120 & 120,000 & 20 \%
\end{array}$ During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2018?

Question

The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2018: $\begin{array}{crr}&&\text { Estimated \% }\\text { Days Outstanding }&\text { Amount }&\text { Uncollectible }\
\hline0-30 & \$ 420,000 & 2 \% \
 31-60 & 140,000 & 5 \% \
61-120 & 100,000 & 10 \% \
\text { Over } 120 & 120,000 & 20 \%
\end{array}$ During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2018?

Quizplus · Accepted Answer

$\begin{array}{lllr}
\$ 420,000 \times 2 \% & = & \$ 8,400 \
\$ 140,000 \times 5 \% & = & 7,000 \
\$ 100,000 \times 10 \% & = & 10,000 \
\$ 120,000 \times 20 \% & = & 24,000 \
\hline \text { Total } & \$ 49,400
\end{array}$

The Following Aging Information Pertains to Jacobsen Co During 2018, Jacobsen Wrote Off $18,000 in Receivables and Recovered