At September 30, 2012, the accounts of Park Terrace Medical Center (PTMC) include the following:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 141,000
Allowance for uncollectible accounts (credit balance) . . . . . . 3,400
During the last quarter of 2012, PTMC completed the following selected transactions:
Dec 28 Wrote off accounts receivable as uncollectible: Red Co., $1,600; Jacob Weiss, $1,300; and Star, Inc., $300.
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 Park 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 31-60 61-90 Days Days $99,000 $ 42,000 $ 15,000 $ 5,000 Over 90 Days 1-30 Days Accounts receivable $161,000 Estimated percent 20% 25% uncollectible 0.2% 2%