At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following

P8-27A Accounting for uncollectible accounts using the allowance
method, and reporting receivables on the balance sheet

At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts receivable $145,000
Allowance for uncollectible accounts (credit balance) 3,500

Dec 28 During the last quarter of 2012, MTMC completed the following selected transactions:
Dec 31 Wrote off accounts receivable as uncollectible: Regan, Co.,
$1,300; Owen Mac, $900; and Rain, Inc., $700.

Recorded uncollectible account expense based on the aging of accounts receivable, as follows:

Age of Accounts

Accounts receivable 1–30 Days 31–60 Days 61–90 Days Over 90 Days
$165,000 $97,000 $ 37,000 $14,000 $ 17,000
Estimated percent uncollectible 35% 0.3% 3% 30%

Requirements
1. Journalize the transactions.
2. Open the Allowance for uncollectible accounts T-account, and
post entries affecting that account. Keep a running balance.
3. Show how Mountain Terrace Medical Center should report net
accounts receivable on its December 31, 2012 balance sheet. Use the
three line reporting format.

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