You must use the associated Excel worksheet to complete all

Question P9-29 

You must use the associated Excel worksheet to complete all assigned exercises/problems. No other format will be accepted.

No Ai, chegg, etc.

Please check your work 

Week1-HomeworkP9-29.xlsx

P9-29A

P9-29A

Accounting for uncollectible accounts using the allowance method

(aging-of-receivables) and reporting receivables on the balance sheet

At September 30, 2018, the accounts of Green Terrace Medical Center (GTMC) include

the following:

Accounts Receivable

$145,000

Allowance for Bed Debt (credit balance)

3,500

During the last quarter of 2018, GTMC completed the following selected transactions:

* Sales on account, $450,000. Ignore Cost of Goods Sold

* Collections on account, $427,100

* Wrote off accounts receivable as uncollectible: Regan, Co. $1,400; Owen Reis, $800;

and Patterson, Inc., $700

* Recorded bad debts expense based on the aging of accounts receivable, as follows:

Age of Accounts

1-30 days
31-60 days
61-90 days
Over 90

days

Accounts Receivable

$104,000
$39,000
$14,000
$8,000

Estimated percent uncollectible

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 Green Terrace Medical Center should report net accounts receivable on its December 31, 2018, balance sheet.

Solution:

Requirements 1 and 2

Date

Accounts and Explanation

Debit
Credit

2018

Accounts Receivable

– 0
 

Sales Revenue

– 0

Cash

– 0

Accounts Receivable

– 0

Allowance fo Bad Debts

– 0

Accounts Receivable-Regan, Co.

– 0

Accounts Receivable-Owen Reiss

– 0

Accounts Receivable-Patterson, Inc.

– 0

Dec. 31

Bad Debts Expense

– 0

Allowance for Bad Debts

– 0

Age of Accounts Receivable

1 – 30 Days
31 – 60 Days
61 – 90 Days
Over 90 Days
Total Receivables

Accounts Receivable

– 0
– 0
– 0
– 0
– 0

Percent uncollectible

0%
0%
0%
0%

Estimated total uncollectible

– 0
– 0
– 0
– 0
– 0

Requirement 2

Accounts Receivable

Allowance for Bad Debts

9/30 Balance
– 0
– 0
Collections

Write-off
– 0
– 0
9/30 Balance

Net credit sales
– 0
– 0
Write-offs

– 0
Unadj. Bal.

– 0
Adj.

Dec. 31 Balance
– 0

– 0
Dec. 31 Balance

Requirement 2

GREEN TERRACE MEDICAL CENTER

Balance Sheet—Partial

December 31, 2018

Assets

Current Assets:

Accounts Receivable

$ – 0

Less: Allowance for Bad Debts

– 0
$ – 0

&”Arial,Bold”&12HORNGREN’S ACCOUNTING – 12th Edition

&”Arial,Bold”Chapter 9: Receivables &”Arial,Bold”Page &P of &N

The post You must use the associated Excel worksheet to complete all first appeared on Writeden.

Reference no: EM132069492

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