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Physicians’ Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable =...

Physicians’ Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $60,000; Allowance for Uncollectible Accounts = $1,100 (credit). On December 31, 2021, Physicians’ estimates uncollectible accounts to be 15% of accounts receivable. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, 2021.

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Answer #1

Date

General Journal

Debit

Credit

December 31 2021

Bad debts expense

$    7,900.00

   Allowance for uncollectible accounts

$    7,900.00

(To record allowance for uncollectible accounts)

Account receivables balance

$ 60,000.00

Allowance for uncollectable account estimate (A)

$    9,000.00

Less: Balance in allowance account

$    1,100.00

Bad debts to be recorded to make allowance account equal to (A) above

$    7,900.00
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