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Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $60,000; Allowance for Uncollectible Accounts $1,500 (credit). Mercy
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $60,000; Allowance for Uncollectible Accounts $1,500 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Estimated Amount Not yet due Age Group Receivable Percent Uncollectible $40,000 20% 0-30 days past due 10,000 25% 31-90 days past due 7,000 50% More than 90 days past due 3,000 90% Total $60,000 Required: 1. Estimate the amount of uncollectible receivables. Estimated Age Group Amount Uncollectible Not yet due $ 8,000 0-30 days past due 2,500 31-90 days past due 3,500 More than 90 days past due 2,700 Total $ 16,700
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