Myaccountinglab With Pearson Etext -- Access Card -- For Horngren's Accounting, The Managerial Chapters
12th Edition
ISBN: 9780134490663
Author: MILLER-NOBLES, Tracie L., Mattison, Brenda L., Matsumura, Ella Mae
Publisher: PEARSON
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Chapter 9, Problem P9.36BPGB
Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the
| Learning Objectives 1, 3 2. Dec. 31, 2018 Allowance CR BaL $11,401 |
At September 30, 2018, the accounts of Spring Mountain Medical Center (SMMC) include the following:
Allowance for |
During the last quarter of 2018, SMMC completed the following selected transactions:
| • Sales on account, $475,000. Ignore Cost of Goods Sold. • Collections on account, $451,800. • Wrote off accounts receivable as uncollectible: Randall, Co.. $1,800; Oliver Welch, $900; and Rain. Inc., $500 • Recorded bad debts expense based on the aging of accounts receivable, as follows: |
| Age of Accounts | |
| 1-30 Day 31-60 61-90 Over 90 Days Days Days |
|
| Accounts Receivable Estimated percent uncollectible |
$97,000 $37,000 $17,000 $14,000 0.3% 3% 30% 35% |
Requirements
1 Open T-accounts for Accounts Receivable and Allowance for Bad Debts Journalize the transactions (omit explanations) and post to the two accounts.
2. Show how Spring Mountain Medical Center should report net accounts receivable on its December 31, 201 8, balance sheet.
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Chapter 9 Solutions
Myaccountinglab With Pearson Etext -- Access Card -- For Horngren's Accounting, The Managerial Chapters
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