At September 30, 2024,the accounts of West Terrace Medical Center (WTMC) include the following: Accounts Receivable $146,000 Allowance for Bad Debts (credit balance) 3,800 Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Journalize the transactions (omit explanations) and post to the two accounts. Sales on account,$420,000. Ignore Cost of Goods Sold. Collections on account, $389,250. Wrote off accounts receivable as uncollectible: Stellar Co, $1,200 ; Orvis Redd 1,100; and Pristine, Inc. $750. Recorded bad debts expense based on the aging of accounts receivable. PART 2: Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Post the transactions to the two accounts. Accounts Receivable Allowance for Bad Debts Requirement 2. Show how West Terrace Medical Center should report net accounts receivable on its December 31, 2024, balance sheet. Balance Sheet (Partial): Current Assets:
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
include the following:
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$146,000
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Allowance for
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3,800
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Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Journalize the transactions (omit explanations) and post to the two accounts.
Sales on account,$420,000. Ignore Cost of Goods Sold.
Collections on account, $389,250.
Wrote off accounts receivable as uncollectible: Stellar Co, $1,200 ; Orvis Redd 1,100; and Pristine, Inc. $750.
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Accounts Receivable
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Allowance for Bad Debts
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Balance Sheet (Partial):
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Current Assets:
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