Mercy Hospital has the following balances on December 31, 2018, before any adjustment

Mercy Hospital has the following balances on December 31, 2018, 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.

  Age Group        Amount

Receivable          Estimated Percent Uncollectible

  Not yet due      $ 50,000                15%

  0–30 days past due       11,000                   20%

  31–90 days past due     8,000                     45%

  More than 90 days past due      1,000                     85%

                                 

       Total               $ 70,000                 

                               

1. Estimate the amount of uncollectible receivables.

2. Record the adjustment for uncollectible accounts on December 31, 2018.

3. Calculate the net realizable value of accounts receivable.


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