19-35B 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) include the following: Learning Objective 3 2. Dec. 31, 2014 Allowance CR Bal. $5,288 $141,000 3,400 Accounts Receivable Allowance for Bad Debts (credit balance) During the last quarter of 2014, PTMC completed the following selected transactions 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 Dec. 28 31 Age of Accounts 61-90 Days 1-30 Days 31-60 Days Over 90 Days Accounts Receivable $42,000 $15,000 $99,000 $5,000 $161,000 Estimated percent uncollectible 0.2% 2% 20% 25% Requirements 1. Journalize the transactions 2. Open the Allowance for Bad Debts T-account, and post entries affecting that Keep a running balance. account 3. Show how Park Terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet