the physical therapy center specializes in helping patients regain motor skills after serious accidents. the…

the physical therapy center specializes in helping patients regain motor skills after serious accidents. the center has the following balances on december 31, 2026, before any adjustment: accounts receivable = $110,000, allowance for uncollectible accounts = $4,000 (negative, debit balance). the center estimates uncollectible accounts based on an aging of accounts receivable as shown below.\nage group amount receivable estimated percent uncollectible\nnot yet due $60,000 4%\n0 - 60 days past due 26,000 20%\n61 - 120 days past due 16,000 30%\nmore than 120 days past due 8,000 85%\ntotal $110,000\nrequired:\n1-a. estimate the amount of uncollectible receivables.\n1-b. estimate bad debt expense for the year ended december 31, 2026.\n2. calculate net accounts receivable reported in the balance sheet at december 31, 2026.\ncomplete this question by entering your answers in the tabs below.\nreq 1a req 1b req 2\nestimate bad debt expense for the year ended december 31, 2026.\nbad debt expense

the physical therapy center specializes in helping patients regain motor skills after serious accidents. the center has the following balances on december 31, 2026, before any adjustment: accounts receivable = $110,000, allowance for uncollectible accounts = $4,000 (negative, debit balance). the center estimates uncollectible accounts based on an aging of accounts receivable as shown below.\nage group amount receivable estimated percent uncollectible\nnot yet due $60,000 4%\n0 - 60 days past due 26,000 20%\n61 - 120 days past due 16,000 30%\nmore than 120 days past due 8,000 85%\ntotal $110,000\nrequired:\n1-a. estimate the amount of uncollectible receivables.\n1-b. estimate bad debt expense for the year ended december 31, 2026.\n2. calculate net accounts receivable reported in the balance sheet at december 31, 2026.\ncomplete this question by entering your answers in the tabs below.\nreq 1a req 1b req 2\nestimate bad debt expense for the year ended december 31, 2026.\nbad debt expense

Answer

Explanation:

Step1: Calculate uncollectible amount for each age - group

For not yet due: $60000\times0.04 = 2400$ For 0 - 60 days past due: $26000\times0.20=5200$ For 61 - 120 days past due: $16000\times0.30 = 4800$ For more than 120 days past due: $8000\times0.85=6800$

Step2: Calculate total uncollectible receivables

$2400 + 5200+4800 + 6800=19200$

Step3: Calculate bad - debt expense

The allowance for uncollectible accounts has a debit balance of $4000$. The required ending balance of the allowance account is $19200$ (credit). So the bad - debt expense is $19200+4000 = 23200$

Step4: Calculate net accounts receivable

Net accounts receivable=Accounts receivable - Ending allowance for uncollectible accounts Net accounts receivable=$110000 - 19200=90800$

Answer:

1-a. $19200$ 1-b. $23200$ 2. $90800$