Question: At September 30 2016 the accounts of Spring Heights Medical

At September 30, 2016, the accounts of Spring Heights Medical Center (SHMC) include the following:
Accounts Receivable ............... $143,000
Allowance for Bad Debts (credit balance) ....... 3,300
During the last quarter of 2016, SHMC completed the following selected transactions:
Dec. 28 Wrote off accounts receivable as uncollectible: Silver, Co., $1,400; Owen Reis, $700; and Pristine, 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 Spring Heights Medical Center should report net accounts receivable on its December 31, 2016, balance sheet.

Sale on SolutionInn
  • CreatedJune 15, 2015
  • Files Included
Post your question