1.Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Journalize the transactions (omit explanations) and post to the two accounts.

3.Show how North Terrace Medical Center should report net accounts receivable on its December 31, 2018, balance sheet.

At September 30, 2018, the accounts of North Terrace Medical Center (NTMC) include the following:

Accounts Receivable	$142,000
Allowance for Bad Debts (credit balance)	3,200

During the last quarter of 2018, NTMC completed the following selected transactions:

Sales on account, $480,000. Ignore Cost of Goods Sold.
	Collections on account, $374,100
	Wrote off accounts receivable as uncollectible: Raja Co., $1,100; Omar Smith, $750; and Pristine, Inc., $750.
	Recorded bad debts expense based on the aging of accounts receivable, as follows:

	Age of Accounts
	130 Days	3160 Days	6190 Days	Over 90 Days
Accounts Receivable	$95,000	$43,000	$13,000	$94,300
Estimated percent uncollectible	0.3%	3%	30%	35%