Concept explainers
Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the
Learning Objectives 1, 3 2. Allowance CR Bal. $8,482 at Dec. 31, 2018 |
At September 30, 2018, the accounts of Green Terrace Medical Center (GTMC) include the following
Allowance for |
During the last quarter of 2018, GTMC completed the following selected transactions:
• Sales on account. $450,000. Ignore Cost of Goods Sold.
• Collections on account, $427,100
• Wrote off accounts receivable as uncollectible: Regan. Co.. $ 1.400; Owen Reis, $800; and Patterson. Inc., $700
• Recorded bad debts expense based on the aging of accounts receivable, as follows:
Age of Accounts | |
1-10 Day 31-60 61-90 Over 90 Days Days Days |
|
Accounts Receivable Estimated percent uncollectible |
$104,000 $39,000 $14,000 $8,000 0.3% 3% 30% 35% |
Requirements
1. Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Journalize the transactions (omit explanations) and post to the two accounts.
2. Show how Green Terrace Medical Center should report net accounts receivable on its December 31, 2018, balance sheet.
Learn your wayIncludes step-by-step video
Chapter 9 Solutions
Horngren's Accounting (12th Edition)
Additional Business Textbook Solutions
Financial Accounting
Managerial Accounting (5th Edition)
Financial Accounting, Student Value Edition (4th Edition)
Financial Accounting, Student Value Edition (5th Edition)
Managerial Accounting (4th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
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- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage