Reference no: EM132584492

The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2021:

Days Outstanding     Amount Estimated         % Uncollectible

0-30                             $430,000                      1%

31-60                             150,000                      3%

61-120                             110,000                    8%

Over 120                             130,000                   15%

Question 1: During 2021, Jacobsen wrote off $19,000 in receivables and recovered $7,000 that had been written off in prior years. Jacobsen's December 31, 2020, allowance for uncollectible accounts was $45,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2021?

Multiple Choice

Option 1: $44,100.

Option 2: $27,800.

Option 3: $37,100.

Option 4: $18,100.