At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 145,000
Allowance for uncollectible accounts (credit balance) . . . . . . . . . . 3,500
During the last quarter of 2012, 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.
Dec 31 Recorded uncollectible account expense based on the aging of accounts receivable, as follows:

Requirements
1. Journalize the transactions.
2. Open the Allowance for uncollectible accounts 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, 2012 balance sheet. Use the three line reportingformat.

Transcribed Image Text:

Age of Accounts Over 90 Days $97,000 $ 37,000 $ 14,000 $ 17,000 1-30 31-60 Days 61-90 Accounts receivable Days Days $165,000 Estimated percent uncollectible ... 0.3% 3% 30% 35%