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Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $54,000; Allowance for Uncollectible Accounts = $1,400 (credit).
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $54,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Estimated Percent Amount Receivable Uncollectible Not yet due 8-30 days past due $34,000 15% 9,400 200 31-90 days past due 6,400 45% More than 90 days past due Total 4,200 85% $54,000 Required: 1. Estimate the amount of uncollectible receivables. Age Group Not yet due 0-30 days past due 31-90 days past due More than 90 days past due Total Estimated Amount Uncollectible 2. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) View transaction let Journal entry worksheet Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Date December 31, 2021 General Journal Debit Credit View general journal Record entry Clear entry 3. Calculate net accounts receivable. Total Accounts Receivable Net Accounts Receivable
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