Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Accounting An Integrated Approach

Authors: Penne Ainsworth, Dan Deines

6th edition

78136601, 978-0078136603

More Books

Students also viewed these Accounting questions