Question

i Requirements Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Journalize the transactions (omit explanations) and post to the two accounts. Show how Park Terrace Medical Center should report net accounts receivable on its December 31, 2018. balance sheet. Print

Answer 1

1.

Journalize the transaction as follows:

Trn. Credit Debit $3.000 General Journal 1 Allowance for bad debts ($1200+$1400+S400) Accounts receivable - Silver Co. Accounts receivable - Oliver w Accounts receivable - Prsitine inc. $1,200 $1,400 $400 $3.912 2 Bad debts expense (W.N) Allowance for bad debts $3,912

Working Amount | W.N Details Accounts receivable 1-30 days 31-60 days 61-90 days Over 90 days Total uncollectible accounts receivable Less: Existing balance in allowance ($3600-$3000) $96.000 x 0.2% $36,000 x 2% $17.000 x 20% $800 x 25% $192 $720 $3,400 $200 $4,512 ($600) Bad debts expense $3,912

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2.

Prepare t-accounts as follows:

Allowance for Bad debts
1	$3,000	Beg. Bal.	$3,600
		2	$3,912
		End. Bal.	$4,512
Accounts receivable
Beg. Bal.	$144,000	1	$1,200
		1	$1,400
		1	$400
End. Bal.	$141,000

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3.

Prepare a Balance sheet as follows:

Balance sheet (partial)
Assets:
Current assets:
Accounts receivable	$141,000
Less: Allowance for bad debts	($4,512)
Accounts receivable, net	$136,488