Sequoia, Inc. has given you the following information from its aging of Accounts Receivable. Using this information, determine the amount of the journal entry to record the estimated uncollectible accounts.

Question

The current balance in Allowance for Doubtful Accounts is a $144 debit.

A) $1,468

B) $1,612

C) $1,756

D) $69,000

Answer 1

C) $1,756
Explanation: (current balance × percent uncollectible) + (31-60 days amount × percent) + (61-90 days amount × percent) + (91+ days amount × percent) + debit balance = amount to record. Ex: ($22,600 × 4%) + ($5,100 × 8%) + ($2,800 × 11%) + ($1,900 × 20%) + $144 = $1,756