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At September 30?, 2016?, the accounts of South Terrace Medical Center (STMC?) include the?following: Accounts Receivable $146,000 Allowance for Bad Debts (credit balance) 3,200 During
At September 30?, 2016?, the accounts of South Terrace Medical Center (STMC?) include the?following:
Accounts Receivable | $146,000 |
Allowance for Bad Debts (credit balance) | 3,200 |
During the last quarter of 2016, STMC completed the following selected? transactions:
Dec. 28 | Wrote off accounts receivable as? uncollectible: Scarlett Co.?, $1,300?; Owen Reis?, $1,100?; and Rain, Inc.?, $400. |
31 | 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 | $104,000 | $45,000 | $16,000 | $1,000 |
Estimated percent uncollectible | 0.2% | 2% | 20% | 25% |
1. | Journalize the transactions. |
2. | Open the Allowance for Bad Debts? T-account, and post entries affecting that account. Keep a running balance. |
3. | Show how South Terrace Medical Center should report net accounts receivable on its December 31?, 2016?, balance sheet. |
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