Mercy Hospital has the following balances on December 31, 2012, before any adjus
ID: 2415685 • Letter: M
Question
Mercy Hospital has the following balances on December 31, 2012, before any adjustment: Accounts Receivable = $79,000; Allowance for Uncollectible Accounts = $2,100 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.
A. I understand part A
Age Group Estimated Amount
UncollectibleNot yet due: $3,6000
-30 days past due: 1,90031
-90 days past due: 3,630
More than 90 days past due: 22,865
Total: $31,995
B. Record the adjustment for uncollectible accounts on December 31, 2012
Estimate future bad debts
Bad Debit expense....?
allowance for uncollectible accounts....?
C. Calculate the net realizable value of accounts receivable ?
Mercy Hospital has the following balances on December 31, 2012, before any adjustment: Accounts Receivable = $79,000; Allowance for Uncollectible Accounts = $2,100 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.
Explanation / Answer
B.December 31, 2012
Bad debt expense 31995
Allowance for uncollectible accounts 31995.
We, will create the provision with estimated amount uncollectable accounts.
C.Net Realizable Value og Account Receivable is 79000-31995
= 47005