Ascension Hospital has the following balances as of December 31, 2024, before any adjustments: Accounts Receivable = $56,000; Allowance for Bad Accounts = $1,300 ( credit ). Ascension estimates bad debts based on the age of the accounts receivable, as shown below.

Age group	amount receivable	Estimated percentage of bad debts
still not due	$36,000	20%
0 to 30 days late	9,600	25%
31 to 90 days past due	6,600	40%
More than 90 days past due	3.800	80%
Total	$56,000

Required:
1. Estimate the amount of uncollectible accounts receivable.
2. Record the bad debt adjustment entry on December 31, 2024.
3. Calculate the net accounts receivable reported on the balance sheet.

Answer rating: 100% (QA)

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