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

Accounts Receivable $145,000

Allowance for Bad Debts 3,600

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

-Sales on account, $490,000. Ignore Cost of Goods Sold.

-Collections on account $374,100.

-Wrote off accounts receivable as uncollectible: Roho Co.:$1,900, Oliver Jones: $1,000, Parrot Inc.:$400

-Recorded bad debts expense based on the aging of accounts receivable, as follows:

A/R: 1-30 days: $95,000, 31-60 days: $37,000, 61-90 days: $17,000, over 90 days: $108,600

Estimated percent uncollectible: 1-30 days: 0.3%, 31-60 days: 3%, 61-90 days: 30%, over 90 days: 35%

Requirement 1: open t-accounts for accounts receivable and allowance for bad debts. Journalize the transactions and post to the two accounts. Begin by journalizing the transactions.

Sales on account, $490,000. Ignore cost of goods sold.

(Journal entry)

Collections on account, $374,100

(Journal entry)

Wrote off accounts receivable as uncollectible: Roho Co.:$1900, Oliver Jones: $1,000, Parrot Inc: $400.

(Journal entry)

Recorded bad debts expense based on the aging of accounts receivable

(Journal entry)

Open t-accounts for accounts receivable and allowance for bad debts. Post the transactions to the two accounts.

Requirement 2: show how South Terrace Medical Center should report net accounts receivable on its December 31, 2018, balance sheet

(Balance sheet partial)