Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Required: 1. Estimate the amount of uncollectible receivables.2. Record the adjustment for uncollectible accounts on December 31, 2021.3. Calculate net accounts receivable.

Transcribed Image Text:

Estimated Percent Uncollectible Amount Age Group Not yet due 0-30 days past due 31-90 days past due More than 90 days past due Total Receivable $50,000 11,000 15% 20% 8,000 1,000 45% 85% $70,000