Question

In: Accounting

Mercy Hospital has the following balances on December 31, 2021. before any adjustment Accounts Receivable - $51000.

Mercy Hospital has the following balances on December 31, 2021. before any adjustment Accounts Receivable - $51000. Allowance for Uncollectible Accounts - $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.

image.png


Required:

 1. Estimate the amount of uncollectible receivables. 

 2. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 

 3. Calculate net accounts receivable.




Solutions

Expert Solution

(1)

Age group Estimated amount uncollectible
Not yet due ($31000 x 15%) $4650
0-30 days past due ($9100 x 20%) $1820
31-90 days past due ($6100 x 45%) $2745
More than 90 days past due (4800 x 85%) $4080
Total $13295

(2)

Date Account title Debit Credit
December 31, 2021

bad debt expenses ($13295 - $1400)

Allowance for uncollectible accounts

$11895

.

.

$11895

(3)

Total accounts receivable $51000
Less: Allowance for uncollectible accounts $13295
Net accounts receivable $37705
   

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Mercy Hospital has the following balances on December 31, 2021
Mercy Hospital has the following balances on December 31, 2021, before any adjustment Accounts Receivable = $70,000, Allowance for Uncollectible Accounts - $1,400 (credin Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown belowRequired: 1. Estimate the amount of uncollectible receivables. 2. Record the adjusting entry for uncollectible accounts on December 31, 2021. (if no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.)3. Calculate net accounts receivable. 
Metlock Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $...
Metlock Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $ 0 Accumulated Depreciation—Equipment 0 Equipment 7,840 Interest Payable 0 Notes Payable 11,200 Prepaid Insurance 2,352 Salaries and Wages Payable 0 Supplies 2,744 Unearned Service Revenue 33,600 All the accounts have normal balances. The following information has been gathered at December 31, 2022. 1. Metlock Company borrowed $11,200 by signing a 12%, one-year note on September 1, 2022. Interest will be paid when the note...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Debits Credits Cash $ 105,000 Accounts receivable 200,000 Inventory 305,000 Prepaid expenses 188,000 Equipment 360,000 Accumulated depreciation $ 130,000 Investments 180,000 Accounts payable 80,000 Interest payable 40,000 Deferred revenue 100,000 Income taxes payable 50,000 Notes payable 300,000 Allowance for uncollectible accounts 36,000 Common stock 420,000 Retained earnings 182,000 Totals $ 1,338,000 $ 1,338,000 Additional information: Prepaid expenses include $160,000 paid on...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.Account TitleDebitsCreditsCash$83,000Accounts receivable178,000Inventory294,000Prepaid expenses166,000Equipment338,000Accumulated depreciation$119,000Investments158,000Accounts payable69,000Interest payable29,000Deferred revenue89,000Income taxes payable39,000Notes payable245,000Allowance for uncollectible accounts25,000Common stock409,000Retained earnings193,000Totals$1,217,000$1,217,000Additional information: 1. Prepaid expenses include $138,000 paid on December 31, 2021, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility. 2. Investments include $39,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $119,000...
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics...
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation. Account Title Debits Credits Cash 69,000 Short-term investments 184,000 Accounts receivable 125,000 Long-term investments 36,000 Inventory 216,000 Receivables from employees 41,000 Prepaid expenses (for 2022) 17,000 Land 281,000 Building 1,560,000 Equipment 638,000 Patent (net) 153,000 Franchise (net) 41,000 Notes receivable 255,000 Interest receivable 13,000 Accumulated depreciation—building 621,000 Accumulated depreciation—equipment 211,000 Accounts payable 190,000 Dividends payable (payable on 1/16/2022) 11,000 Interest payable 17,000 Income...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Debits Credits Cash $ 67,000 Accounts receivable 162,000 Inventory 286,000 Prepaid expenses 150,000 Equipment 322,000 Accumulated depreciation $ 111,000 Investments 142,000 Accounts payable 61,000 Interest payable 21,000 Deferred revenue 81,000 Income taxes payable 31,000 Notes payable 205,000 Allowance for uncollectible accounts 17,000 Common stock 401,000 Retained earnings 201,000 Totals $ 1,129,000 $ 1,129,000 Additional information: Prepaid expenses include $122,000 paid on...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing...
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Debits Credits Cash $ 103,000 Accounts receivable 198,000 Inventory 304,000 Prepaid expenses 186,000 Equipment 358,000 Accumulated depreciation $ 129,000 Investments 178,000 Accounts payable 79,000 Interest payable 39,000 Deferred revenue 99,000 Income taxes payable 49,000 Notes payable 295,000 Allowance for uncollectible accounts 35,000 Common stock 419,000 Retained earnings 183,000 Totals $ 1,327,000 $ 1,327,000 Additional information: Prepaid expenses include $158,000 paid on...
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics...
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation. Account Title Debits Credits Cash 91,000 Short-term investments 206,000 Accounts receivable 147,000 Long-term investments 47,000 Inventory 227,000 Receivables from employees 52,000 Prepaid expenses (for 2022) 28,000 Land 292,000 Building 1,670,000 Equipment 649,000 Patent (net) 164,000 Franchise (net) 52,000 Notes receivable 310,000 Interest receivable 24,000 Accumulated depreciation—building 632,000 Accumulated depreciation—equipment 222,000 Accounts payable 201,000 Dividends payable (payable on 1/16/2022) 22,000 Interest payable 28,000 Income...
The following are the ending balances of accounts at December 31, 2021, for the Valley Pump...
The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Debits Credits Cash $ 42,000 Accounts receivable 90,000 Inventory 115,000 Interest payable $ 27,000 Investment in equity securities 78,000 Land 154,000 Buildings 385,000 Accumulated depreciation—buildings 117,000 Equipment 109,000 Accumulated depreciation—equipment 42,000 Copyright (net) 29,000 Prepaid expenses (next 12 months) 49,000 Accounts payable 82,000 Deferred revenue (next 12 months) 37,000 Notes payable 335,000 Allowance for uncollectible accounts 7,000 Common stock 370,000 Retained...
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics...
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation. Account Title Debits Credits Cash 87,000 Short-term investments 202,000 Accounts receivable 143,000 Long-term investments 45,000 Inventory 225,000 Receivables from employees 50,000 Prepaid expenses (for 2022) 26,000 Land 290,000 Building 1,650,000 Equipment 647,000 Patent (net) 162,000 Franchise (net) 50,000 Notes receivable 300,000 Interest receivable 22,000 Accumulated depreciation—building 630,000 Accumulated depreciation—equipment 220,000 Accounts payable 199,000 Dividends payable (payable on 1/16/2022) 20,000 Interest payable 26,000 Income...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT