Estimating and Recording Uncollectible Accounts Using the Aging

Exercise 5-10A Record the adjusting entry for uncollectible accounts using the aging method (LO5-5) Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Estimated Amount Percent Age Group Receivable Uncollectible Not yet due $50,000 15% 0-30 days past due 11, 000 20% 0 days due 8, 000 45% More than 90 days 1,000 85% past due Total $70, 000 Required: 1. Estimate the amount of uncollectible receivables. Estimated Age Group Amount Uncallartihla Not yet due 0-30 days past due 31-90 days past due More than 90 days past due Total 2. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry View general journal