The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $90,000; Allowance for Uncollectible Accounts = $2,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Exercise 5-11 Record the adjustment for uncollectible accounts using the aging method (LO4)

[The following information applies to the questions displayed below.]

The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $90,000; Allowance for Uncollectible Accounts = $2,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Age Group	Amount Receivable	Estimated Percent Uncollectible
Not yet due	$ 40,000	5%
0 – 60 days past due	24,000	15%
61 – 120 days past due	14,000	25%
More than 120 days past due	12,000	80%
Total	$90,000

Required:
1.	Estimate the amount of uncollectible receivables.

2.	Record the adjustment for uncollectible accounts on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Explanation: 2. Bad debts expense: $18,700 + $2,000 = $20,700
	3. Calculate the net realizable value of accounts receivable.