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A hospital has the following balances on December 31, Year 1, before any adjustment: Accounts Receivable = $54,000; Allowance for Uncollectible Accounts = $1,400 (credit).
A hospital has the following balances on December 31, Year 1, before any adjustment: Accounts Receivable = $54,000; Allowance for Uncollectible Accounts = $1,400 (credit). The hospital estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Not yet due 030 days past due 3190 days past due More than 90 days past due Amount Receivable $34,000 9,400 6,400 Estimated Percent Uncollectible 15% 20% 45% 4,200 85% Total $ 54,000 Required: 1. Estimate the amount of uncollectible receivables. Age Group Estimated Amount Uncollectible Not yet due 0-30 days past due 31-90 days past due More than 90 days past due Total $ 0 2. Record the adjusting entry for uncollectible accounts on December 31, Year 1. (lf no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
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