i More Info Dec. 28 Wrote off accounts receivable as uncollectible: Sapphire Co., $1,400; Oliver Welch, $1,300; and Pristine, Inc., $300. 31 Recorded bad debts expense based on the aging of accounts receivable, as follows: Age of Accounts Accounts Receivable Estimated percent uncollectible 1-30 Days 31-60 Days 61-90 Days Over 90 Days $ 96,000 $ 37,000 $ 16,000 $ 15,000 0.3% 3% 30% 35% Print Done At September 30, 2016, the accounts of Green Terrace Medical Center (GTMC) include the following: During the last quarter of 2016, GTMC completed the following selected transactions: Click the icon to view the transactions.) Accounts Receivable 144,000 Read the requirements. Allowance for Bad Debts (credit balance) 3,300 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., $1,400; Oliver Welch, $1,300; and Pristine, Inc., $300. Date Accounts and Explanation Debit Credit 2016 Dec. 28 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 Green 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