Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet [25-35 min]
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts receivable............................ | $ 145,000 |
Allowance for uncollectible accounts (credit balance) . . . | 3,500 |
During the last quarter of 2012, MTMC completed the following selected transactions:
Dec 28 | Wrote off accounts receivable as uncollectible: Regan, Co., $1,300; Owen Mac, $900; and Rain, Inc., $700. | ||||
Dec 31 | Recorded uncollectible account expense based on the aging of accounts receivable, as follows: | ||||
Accounts receivable | 1-30 Days | 31-60 Days | 61-90 Days | Over90 Days | |
$165,000........... | $97,000 | $ 37,000 | $ 14,000 | $ 17,000 | |
Estimated percent uncollectible ....... | 0.3% | 3% | 30% | 35% | |
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 Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the three line reporting format.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.