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

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?

A) $55,400.
B) $28,000.
C) $49,400.
D) $31,400.

Correct Answer:

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