The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $110,000; Allowance for Uncollectible Accounts =$4,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.
\begin{matrix} \text{Age Group} & \text{Amount Receivable} & \text{Estimated Percent Uncollectible}\\ \hline \text{Not yet due} & \text{$\$ 60,000$} & \text{4$\\\%$}\\ \text{$0-60$ days past due} & \text{$26,000$} & \text{20$\\\%$}\\ \text{$61-120$ days past due} & \text{$16,000$} & \text{30$\\\%$}\\ \text{More than 120 days past due} & \underline{8,000} & \text{85$\\\%$}\\ \text{Total} & \underline{\underline{\$ 110,000}} & \text{ }\\ \end{matrix}
Age Group
Not yet due
0−60 days past due
61−120 days past due
More than 120 days past due
Total
Amount Receivable
$60,000
26,000
16,000
8,000
$110,000
Estimated Percent Uncollectible
4%
20%
30%
85%
Estimate the amount of uncollectible receivables. 2. Record the adjustment for uncollectible accounts on December 31, 2018. 3. Calculate the net realizable value of accounts receivable.
