Problem 4 (11) The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31st, before any adjustment: Sales = $1,500,000; A/R = $110,000; Allowance for Uncollectible Accounts = $4,000 (debit). The center is considering two methods of estimating the allowance/bad debts, are the balance sheet approach and the income statement approach. Estimates relating to both are presented below: Aging of Accounts Receivable: Age Group Amount of Receivable Net yet due $. 60,000 0-60 days past due 26,000 61 - 120 days past due 16,000 More than 120 days past due 8,000 Est. % Uncollectible 4% 20% 30% 85% Total $ 110,000 Physical Therapy Center is also considering using an estimate of 1% of sales to determine bad debts. Required: Part A and B are independent. Part A: Given the company uses the Balance Sheet Approach, complete the following. 1. Estimate the amount of uncollectible receivables. 2. Record the adjustment for uncollectible accounts on December 31st. 3. Calculate net accounts receivable. Part B: Given the company uses the Income Statement Approach, complete the following. 1. Estimate the amount of uncollectible receivables. 2. Record the adjustment for uncollectible accounts on December 31st 3. Calculate net accounts receivable. Part B: Given the company uses the Income Statement Approach, complete the following. 1. Estimate the amount of uncollectible receivables. 2. Record the adjustment for uncollectible accounts on December 31st. 3. Calculate net accounts receivable