During the last quarter of 2016, NTMC completed the following selected transactions: (Click the icon to view the transactions.). Read the requirements i More Info Dec. 28 Wrote off accounts receivable as uncollectible: Sapphire Co., $1,800, Owen Wilson, $700, and Patterson, Inc., $300. 31 Recorded bad debts expense based on the aging of accounts receivable, as follows: . . Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days $ 99,000 $ 44,000 $ 18,000 $ 1,000 0.3% 3% 30% 35% Estimated percent uncollectible Print Done Requirements - X 2. Journalize the transactions. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. Show how North Terrace Medical Center should report net accounts receivable on its December 31, 2016, balance sheet. 3. Print Done At September 30, 2016, the accounts of North Terrace Medical Center (NTMC) include the following: S Accounts Receivable Allowance for Bad Debts (credit balance) 142.000 3.200 Requirement 1. Journalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Dec. 28: Wrote off accounts receivable as uncollectible: Sapphire Co., $1,800: Owen Wilson, $700; and Patterson, Inc., 5300 Date Accounts and Explanation Debit Credit 2016 Dec. 28 Debit Credit Date Accounts and Explanation 2016 Dec 28 Accounts Receivable_Owen Wilson Accounts Receivable_Patterson, Inc. Accounts ReceivableSapphire Co. Allowance for Bad Debts Dec. 31: Re Bad Debts Expense Cash Date Sales Revenue 2016 ounts receivable Debit Credit Dec. 28: Wrote off accounts receivable as uncollectible: Sapphire Co., $1,800; Owen Wilson, Date Accounts and Explanation Debit Credit 2016 Dec. 28 bunts receivable Date Debit Credit Dec. 31: Re Collected cash on account. Record sales for the year. Recorded bad debts expense for the period. Dec. 31 Reinstated previously written off account. Wrote off uncollectible accounts. 2016 Dec. 31. Recorded bad debts expense based on the aging of accounts receivable Date Accounts and Explanation Debit Credit 2016 Dec. 31 Requirement 2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. (Enter the September 30 balance and post the December 28 entry on the first line of the account Calculate the unadjusted balance on the second line of the account. Then post the December 31 adjusting entry on the third line of the account and calculate the December 31 adjusted balance on the last line of the account) Allowance for Bad Debts Requirement 3. Show how North Terrace Medical Center should report net accounts receivable on its December 31, 2016, balance sheet. (Ignore the Accounts Receivable balance given as of September 30, 2016 when preparing the partial balance sheet at December 31, 2016 below.) Balance Sheet (Partial): Current Assets I Center should report net acc alance given as of September Accounts Receivable Add: Allowance for Bad Debts Bad Debt Expense Less: Allowance for Bad Debts Sales revenue I Center should report net accou alance given as of September 3 Accounts Receivable Add: Allowance for Bad Debts Bad Debt Expense Less: Allowance for Bad Debts Sales revenue