Question
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable $68,000; Allowance for Uncollectible Accounts $1,300 (credit). Mercy estimates
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable $68,000; Allowance for Uncollectible Accounts $1,300 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. = Age Group Not yet due 0-30 days past due 31-90 days past due More than 90 days past due Total Amount Receivable. Estimated Percent Uncollectible $48,000 20% 10,800 25% 7,800 40% 1,400 80% $68,000 Required: 1. Estimate the amount of uncollectible receivables. Estimated Age Group Amount Uncollectible Not yet due $ 9,600 0-30 days past due 2,700 31-90 days past due 3,120 More than 90 days past due 1,120 Total 16,540
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