Question

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

Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $58,000; Allowance for Uncollectible Accounts = $1,500 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $ 38,000 20 %
0–30 days past due 9,800 25 %
31–90 days past due 6,800 50 %
More than 90 days past due 3,400 90 %
Total $ 58,000

Required:

1. Estimate the amount of uncollectible receivables.

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