Let's solve this step-by-step using the given data.

Data Provided:

1. Aging of Accounts Receivable:

   • Current: $22,600 × 4% uncollectible
   • 31–60 days: $5,800 × 8% uncollectible
   • 61–90 days: $2,400 × 12% uncollectible
   • 91 and up: $2,000 × 18% uncollectible

2. Current Allowance for Doubtful Accounts Balance: $144 debit.

Step 1: Calculate the estimated uncollectible amount for each aging category.

• Current:
  $22,600 × 4% = $904

• 31–60 days:
  $5,800 × 8% = $464

• 61–90 days:
  $2,400 × 12% = $288

• 91 and up:
  $2,000 × 18% = $360

Step 2: Total estimated uncollectible accounts.

$904 + 464 + 288 + 360 = 2,016$

Step 3: Adjust the allowance balance.

Since the current balance in the Allowance for Doubtful Accounts is a $144 debit, the company needs to credit the account with the total estimated uncollectibles.

• Amount to journalize:
  $2,016 - (-$144) = $2,016 + $144 = $2,160

Final Answer:

A. $2,160

Would you like a detailed explanation for journal entries or further insights?

Follow-Up Questions:

1. Why is it important to adjust the Allowance for Doubtful Accounts for estimated uncollectibles?
2. How does the debit balance in the allowance account affect the adjustment entry?
3. What journal entry would be recorded for this adjustment?
4. What are some common methods for estimating bad debts aside from the aging method?
5. How do changes in bad debt estimation affect financial reporting?

Tip:

Always ensure the balance in the Allowance for Doubtful Accounts reflects the correct estimation of uncollectibles to provide an accurate representation of net realizable value for accounts receivable.