Question

Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2015, Pearl provides services on account of $590,000. Of this amount, $80,000 remains receivable at the end of the year. An aging schedule as of December 31, 2015, is provided below.


Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2015, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $5,000 (credit).
3. On July 19, 2016, a customer’s account balance of $8,000 is written off as uncollectible. Record the write-off.
4. On September 30, 2016, the customer whose account was written off in Requirement 3 unexpectedly pays the full amount. Record the cashcollection.


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  • CreatedJuly 15, 2014
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