Question

JUL 9 of 11 (9 complete) HW Score: 62.46%, 6.87 of 11 pts P8-29A (similar to) Question Help At September 30, 2018, the accounts of Mountain Terrace Medical Center (MTMC) include the following: During the last quarter of 2018, MTMC completed the following selected transactions Click the icon to view the transactions.) $ Accounts Receivable Allowance for Bad Debts (credit balance) 146,000 3,400 Read the requirements Requirement 1. Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Journalize the transactions (omit explanations) and post to the two accounts Begin by journalizing the transactions (Record debits first, then credits. Exclude explanations from journal entries.) Sales on account, $420,000. Ignore Cost of Goods Sold Date Accounts and Explanation Debit Credit 2018 Dec 31 Choose from any list or enter any number in the inputs and then click

Answer 1

Solution:

P8-29A: Journal Entries

Date	Account Titles and Explanation	Debit	Credit
Dec.31`2018	Accounts Receivables	$   420,000.00
	Sales Revenue		$ 420,000.00
	(Being Sales made on account)
Dec.31`2018	Cash	$   410,260.00
	Accounts Receivables		$ 410,260.00
	( Being cash received on account receivable)
Dec.31`2018	Allowance for Bad Debts	$       3,100.00
	Accounts Receivables		$      3,100.00
	( Being sales made on account)
Dec.31`2018	Bad Debts Expense (Note:2)	$       5,820.00
	Allowance for Bad Debts		$      5,820.00
	(Being bad debts expensed)

T-Accounts

Accounts Receivables
Beg	$ 146,000.00	Cash	$ 410,260.00
Sales revenue	$ 420,000.00	Allowance for Bad Debts	$      3,100.00
		Dec. 31 End	$ 152,640.00
Allowance for Bad Debts
Accounts Receivables	$      3,100.00	Beg.	$      3,400.00
Bad Debts ( Balancing Figure)	$      5,820.00	Dec. 31 End (Note:1)	$      5,520.00

Note:

1)

Calculation of Allowance for Bad Debts Ending Balance
Accounts Receivables	95000	36000	16000	5640
Estimated Percent uncollectible	0.20%	2%	20%	25%
Sub Totals	190	720	3200	1410
Total				5520

2) Bad Debts is the balancing Figure in Allowance for Bad Debts T-Account.

P8-32A

Note	Date	Principal Amount	Interest rate	Term	Maturity Month/Day	Maturity Year	Maturity Amount	Calculation
1	Apr-01	$        18,000	6%	1 Year	April 1st	2019	$                   19,080	$18000+($18000*6%)
2	Jun-30	$        22,000	14%	9 Months	March 30th	2019	$                   24,310	$22000+($22000*14%*9/12)
3	Jun-19	$        20,000	10%	180 Days	December 16th	2018	$                   20,986	$20000+($20000*10%*180/365)