P9-28A Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting receivables on the balance sheet At September 30, 2014, the accounts of Mountain Terrace Medical Center (MTMC) include the following Accounts Receivable S145,000 Allowance for Bad Debts (credit balance) 3,500 During the last quarter of 2014, MTMC completed the following selected transactions: Dec. 28 Wrote off accounts receivable as uncollectible: Regan Co., $1,300; Owen Mac, $900; and Rain, Inc., $700 31 Recorded bad debts expense based on the aging of accounts receivable, as follows Age of Accounts Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $97,000 $37,000 $165,000 $17,000 $14,000 Estimated percent uncollectible 3% 0.3% 30% 35% Requirements 1. Journalize the transactions. 2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. 3. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet