Mercy Hospital has the following balances on December 31, 2012, before any adjustment: Accounts Receivable = $60,000;

Question:

Mercy Hospital has the following balances on December 31, 2012, before any adjustment: = $60,000; Allowance for Uncollectible Accounts = $1,500 (credit). Mercy estimates uncollectible accounts based on an aging of as shown below.
Age Group.............. Amount Receivable................ Estimated Percent Uncollectible
Not yet due ...........................$40,000................................................ 10%
0 -30 days past due................... 10,000................................................. 20%
31- 90 days past due ....................7,000................................................. 50%
More than 90 days past due........... 3,000.................................................. 90%
Total ...................................$60,000
Required:
1. Estimate the amount of uncollectible receivables.
2. Record the adjustment for uncollectible accounts on December 31, 2012.
3. Calculate the net realizable value of Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...