Question

mework Saved The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $110,000: Allowance for Urfcollectible Accounts $4.000 (debit. The center estimates uncollectible accounts based on an aging of accounts receivable as shown belove Age Grow Not yet de 0-60 days past 51-120 days past due Herhan 120 days past Τοτο) Estimated Percent Amount Receivable Uncollectible $ 60,000 26,900 2015 16,000 305 3.000 85 $110,000 1 Required: 1. Estimate the amount of uncollectible receivables AO GO Estimated Amount Uncollectible Noel 0.50 days past 01.120 days past More than 120 days pas dos Total Next > o Type here to search ovo С. 2 FE > 2 $ 4 3 5 6 & 7 8 9 E R or Т. Y U O Р 1 s n

Answer 1

Question

Answer:

	The Physical therapy centre
1
	Age Group	Amount Receivable	Estimated percent uncollectible	Estimated Amount Uncollectible
	not yet due	$60,000	4%	$2,400
	0 - 60 days past due	$26,000	20%	$5,200
	61-120 days past due	$16,000	30%	$4,800
	more than 120 days past due	$8,000	85%	$6,800
	Total	$1,10,000		$19,200
2	Journal Entry
Date	General Journal		Debit	Credit
Dec 31,2021	Uncolleible Account Expenses	$23,200
	Allowance for uncollectible account		$23,200
	( to adjust the allowance account from $ 4000 ( debit)
	to target balance of 19200( credit))
3	Calcuate net account receivable
	Total Account Receivable			$1,10,000
	Less: Allowance for uncollectible account		-$19,200
	Net Account receivable			$90,800