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Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $58,000; Allowance for Uncollectible Accounts = $1,500 (credit). Mercy
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $58,000; Allowance for Uncollectible Accounts = $1,500 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.
Age Group | Amount Receivable | Estimated Percent Uncollectible | ||||||||
Not yet due | $ | 38,000 | 20 | % | ||||||
030 days past due | 9,800 | 25 | % | |||||||
3190 days past due | 6,800 | 50 | % | |||||||
More than 90 days past due | 3,400 | 90 | % | |||||||
Total | $ | 58,000 | ||||||||
Required:
1. Estimate the amount of uncollectible receivables.
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