Exercise 5-10 (Algo) Record the adjusting entry for uncollectible accounts using the aging method (LO5-5)...
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Accounting
Exercise 5-10 (Algo) Record the adjusting entry for uncollectible accounts using the aging method (LO5-5)
Ascension Hospital has the following balances on December 31, 2024, before any adjustment: Accounts Receivable = $64,000; Allowance for Uncollectible Accounts = $1,400 (credit). Ascension estimates uncollectible accounts based on an aging of accounts receivable as shown below.
Age Group
Amount Receivable
Estimated Percent Uncollectible
Not yet due
$44,000
15%
0 to 30 days past due
10,400
20%
31 to 90 days past due
7,400
45%
More than 90 days past due
2,200
85%
Total
$64,000
Required:1. Estimate the amount of uncollectible receivables. 2. Record the adjusting entry for uncollectible accounts on December 31, 2024. 3. Calculate net accounts receivable reported in the balance sheet.
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