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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