P8-27A Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet [25–35 min]
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Allowance for uncollectible accounts (credit balance)
During the last quarter of 2012, MTMC completed the following selected transactions:
- Journalize the transactions.
- Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.
- Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the three line reporting format.