At September 30, 2016, the accounts of Park Terrace Medical Center (PTMC) include the following:
Accounts Receivable...............$ 143,000
Allowance for Bad Debts (credit balance)...... 3,300
During the last quarter of 2016, PTMC completed the following selected transactions:
Dec. 28 Wrote off accounts receivable as uncollectible: Silver, Co., $1,200; Oscar Wells, $1,000; and Rain, Inc., $600
31 Recorded bad debts expense based on the aging of accounts receivable, as follows:

Requirements
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 Park Terrace Medical Center should report net accounts receivable on its December 31, 2016, balance sheet.

Transcribed Image Text:

Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days $103,000 41,000 13,000 30% Accounts Receivable $ 6,000 Estimated percent uncollectible 0.3% 3% 35%