Learning Objective 4 a $9-10 Accounting for a note receivable On June 6, Lakeland Bank & Trust Company lent $110,000 to Samantha Michael on a 90-day, 9% note. Requirements 1. Journaline for Lakeland the lending of the money on June 6, 2. Journalte the collection of the principal and interest at maturity. Specify the date. Learning Objective 3 2 Dec 31, 2014 Allowance CR Bal $5,289 P9-35B Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting receivables on the balance sheet At September 30, 2014, the accounts of Park Terrace Medical Center (PTMC) include the following Accounts Receivable $ 141,000 Alowance for Bad Debts (credit balance) 3,400 During the last quarter of 2014, PTMC completed the following selected transactions Dec 28 Wrole off accounts receivable as uncollectible: Red Co, 51,600, Jacob Weiss, $1,300, and Star, Inc. 300 31 Recorded bad debts expense based on the aging of accounts receivable, as follows Accounts Receivable Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days 599,000 542,000 $15,000 $5,000 0.2% 29 20% 25% $161,000 Estimated percent un collectible Requirements 1. Journalize the transactions 2. Open the Allowance for Bad Debes T-account, and post entries affecting chat account. Keep a running balance 3. Show how Park Terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet. A-10 Requirement i Accounts and Explanation Debit Date June 6 Credit Requirement 2 Accounts and Explanation Debit Credit Date Sep. 4 Jurement Accounts and Explanation Date 2014 Dec. 28 Debit Credit Dec. 31 Total Receivables 1 - 30 Days Accounts Receivable $ 99.000 Percent uncollectible * 0.2% Estimated total uncollectible 31-60 Days $ 42,000 x 2.0% Age of Accounts Reccivable 61 - 90 Over 90 Days Days $ 15,000 $5,000 x 20.0% x 25.0% $ 161,000 Requirement 2 Allowance for Bad Debts Requirement 3 PARK TERRACE MEDICAL CENTER Balance Sheet-Partial December 31, 2014 Assets Current Assets: Accounts Receivable Less: Allowance for Bad Debts Net A/R