Pearl E. White Orthodontist specializes in correcting misaligned teeth.
During 2012, Pearl provides services on account of $584,000. Of this
amount, $87,000 remains receivable at the end of the year. An aging
schedule as of December 31, 2012, is provided below.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $25,000 15%
0-90 days past due 19,000 20%
91-180 days past due 6,000 35%
More than 180 days past due 37,000 65%
Total $87,000
Required:
1. Calculate the allowance for uncollectible accounts. (Omit the \\\"$\\\" sign in your response.)
2.
Record the December 31, 2012, adjustment, assuming the balance of
allowance for uncollectible accounts before adjustment is $2,300
(credit). (Omit the \\\"$\\\" sign in your response.)
3. On July 19, 2013, a customer\\\'s account balance of $5,000 is written off as uncollectible. Record the write-off
4. On
September 30, 2013, the customer whose account was written off in Part 3
unexpectedly pays the full amount. Record the cash collection.
