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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.

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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 2 years ago
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