Question: At September 30 2014 the accounts of Mountain Terrace Medical

At September 30, 2014, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts Receivable .............$ 145,000
Allowance for Bad Debts (credit balance) .... 3,500
During the last quarter of 2014, MTMC completed the following selected transactions:
Dec. 28 Wrote off accounts receivable as uncollectible: Regan, Co., $ 1,300; Owen Mac, $ 900; and Rain, Inc., $ 700
31 Recorded bad debts expense based on the aging of accounts receivable, as follows:

1. Journalize the transactions.
2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance.
3. Show how Mountain Terrace Medical Center should report net accounts ­receivable on its December 31, 2014, balancesheet.
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  • CreatedJanuary 16, 2015
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