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.

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

Date

Account title

Debit

Credit

December 31, 2021

bad debt expenses ($13295 - $1400)

Allowance for uncollectible accounts

$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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