Answer 29A

P8-29A Accounting for uncollectible accounts using the allowance method Learning Objectives 1, 3 (aging-of-receivables) and reporting receivables on the balance sheet At September 30, 2018, the accounts of Green Terrace Medical Center (GTMC) include the following: 2. Allowance CR Bal. $8,482 at Dec. 31, 2018 Accounts Receivable $ 145,000 Allowance for Bad Debts (credit balance) 3,500 During the last quarter of 2018, GTMC completed the following selected transactions: * Sales on account, $450,000. Ignore Cost of Goods Sold. O:Ala, cisales aev . Collections on account, $427,100 :Cash, c: Ala . Wrote off accounts receivable as uncollectible: Regan, Co., $1,400; Owen Reis, $800; and Patterson, Inc., $700 pilaisasce, C Ale Recorded bad debts expense based on the aging of accounts receivable, as follows: . Age of Accounts 1-30 Days 31-6061-90 Over 90 Days Days Days Accounts Receivable 104,000 39,000 $14,000 $8,000 Estimated percent uncollectible 0.3% 3% 30% 35%