Physicians\' Hospital has the following balances on December 31, 2018, before an
ID: 2399343 • Letter: P
Question
Physicians' Hospital has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $57,000; Allowance for Uncollectible Accounts = $1,100 (credit). On December 31, 2018, Physicians' estimates uncollectible accounts to be 15% of accounts receivable.
Required:
1. Record the adjustment for uncollectible accounts on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the adjustment entry for Uncollectible Accounts.
Note: Enter debits before credits.
2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.
3. Calculate the net realizable value of accounts receivable.
Explanation / Answer
1 Dec-31-18 Bad debt expense 7450 =(57000*15%)-1100 Allowance for uncollectible accounts 7450 2 Bad debt expense 7450 Allowance for uncollectible accounts 8550 3 Total accounts receivable 57000 Less: Allowance for uncollectible accounts -8550 Net realizable value 48450