(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method, and repo...

(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet [25-35 min]

At September 30, 2011, the accounts of South Terrance Medical Center (STMC) include the following:

Requirements

1. Journalize the transactions.

2. Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.

3. Show how South Terrance Medical Center should report accounts receivable on its December 31, 2011, balance sheet. Use the three line reporting format.