Question: At September 30 2016 the accounts of Park Terrace Medical

At September 30, 2016, the accounts of Park Terrace Medical Center (PTMC) include the following:
Accounts Receivable ............... $ 143,000
Allowance for Bad Debts (credit balance) ...... 3,300
During the last quarter of 2016, PTMC completed the following selected transactions:
Dec. 28 Wrote off accounts receivable as uncollectible: Silver, Co., $1,200; Oscar Wells, $1,000; and Rain, Inc., $600
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 Park Terrace Medical Center should report net accounts receivable on its December 31, 2016, balance sheet.

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  • CreatedJune 15, 2015
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