QuestionPhysicians' Hospital has A/R \$54,000 and allowance \$1,100. Uncollectibles are estimated at 15%. Find entries and net A/R.

Studdy Solution
Calculate the net accounts receivable.
$$Net\, Accounts\, Receivable = \$54,000 - \$8,100 = \$45,900$$The adjusting entry for uncollectible accounts on December31,2024, is a debit to Bad Debt Expense for \$7,000 and a credit to Allowance for Uncollectible Accounts for \$7,000. The bad debt expense reported in the income statement is \$7,000. The allowance for uncollectible accounts reported in the balance sheet is \$8,100. The net accounts receivable reported in the balance sheet is \$45,900.