Mercy Hospital has the following balances as of December 31, 2021, before any adjustments: Accounts Receivable = $70,000; Allowance for Bad Accounts = $1,400 ( credit ). Mercy 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		ps	50,000					15	%
0–30 days past due			11,000					20	%
31–90 days past due			8,000					45	%
More than 90 days past due			1,000					85	%
Total		ps	70.000

Required:

1. Estimate the amount of uncollectible accounts receivable.

2. Record the adjusting entry for uncollectible accounts on December 31, 2021.

3. Calculate net accounts receivable.

Answer rating: 100% (QA)

1 To estimate the amount of uncollectible accounts receivable we need to calculate the estimated bad ... View the full answer