tive 3 P9-35B Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting rec

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Tive 3 P9 35b Accounting For Uncollectible Accounts Using The Allowance Method Aging Of Receivables And Reporting Rec 1 (63.52 KiB) Viewed 38 times

tive 3 P9-35B Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting receivables on the balance sheet At September 30, 2014, the accounts of Park Terrace Medical Center (PTMC) wance 55,288 include the following: Accounts Receivable Allowance for Bad Debts (credit balance) $ 141,000 3,400 During the last quarter of 2014, PTMC completed the following selected transactions: Dec. 28 Wrote off accounts receivable as uncollectible: Red, Co., $1,600; Jacob Weiss, $1,300; and Star, Inc., $300 Recorded bad debts expense based on the aging of accounts receivable, as follows: 31 Accounts Receivable 1-30 Days Over 90 Days Age of Accounts 31-60 Days 61-90 Days $42.000 $15,000 2% 20% $161,000 Estimated percent uncollectible 599,000 0.2% $5,000 25% Requirements 1. Journalize the transactions. 2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. 3. Show how Park Terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet.