PROBLEM2:

At September 30.2014, the account of Park Terrace Medical Center (PTMC) include the following:

Account Receivable $144000

Allowance for Bad Debts (credit balance) 3100

During the last quarter of 2014, PTMC completed the following selected transactions:

Dec.28 Wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600.

Dec31 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

$164000 $104000 $38000 $17000 $5000

Estimated percent uncollectible 0.3% 3% 30% 35%

Requirement1: Journalize the transactions.

Dec 28: wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600.

Dec 31 Recorded bad debts expense based on the aging of accounts receivable

Requirement 2:

Open the allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. (Enter the September 30 balance an d post the December 28 entry on the first line of the account. Calculate the adjusted balance on the second line of the account. Then post the December 31 adjusting entry on the third line of the account and calculate the December 31 adjusted balance on the last line of the account)

Allowance for bad Debts

Requirement 3:

Show how Park terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet.

Balance sheet (partial):

Current Assets:

PROBLEM2: At September 30.2014, the account of Park Terrace Medical Center (PTMC) include the following: Account Receivable $144000 Allowance for Bad Debts (credit balance) 3100 During the last quarter of 2014, PTMC completed the following selected transactions: Dec.28 Wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600. Dec31 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 $164000 $104000 $38000 $17000 $5000 Estimated percent uncollectible 0.3% 3% 30% 35% Requirement1: Journalize the transactions. Dec 28: wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600. Dec 31 Recorded bad debts expense based on the aging of accounts receivable Requirement 2: Open the allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. (Enter the September 30 balance an d post the December 28 entry on the first line of the account. Calculate the adjusted balance on the second line of the account. Then post the December 31 adjusting entry on the third line of the account and calculate the December 31 adjusted balance on the last line of the account) Allowance for bad Debts Requirement 3: Show how Park terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet. Balance sheet (partial): Current Assets