Chapter 8, p8-27a
P8-27A
Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet [25–35 min]
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts receivable $145,000
Allowance for uncollectible accounts (credit balance) 3,500
During the last quarter of 2012, MTMC completed the following selected transactions:
Dec 28 Wrote off accounts receivable as uncollectible: Regan, Co. $1,300; Owen Mac, $900; and Rain, Inc. $700.
Dec 31 Recorded uncollectible account expense based on the aging of accounts receivable, as follows:

Age of Accounts
________________________________________
Accounts receivable 1–30 Days 31–60 Days 61–90 Days Over 90 Days
$165,000 $97,000 $ 37,000 $ 14,000 $ 17,000
Estimated percent uncollectible 0.3% 3% 30% 35%
Requirements
• 1. Journalize the transactions.
• 2. Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.

And the question here is?