Question

The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $98,000; Allowance for Uncollectible Accounts = $2,800 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Calculate net accounts receivable

Answer 1

To calculate the net accounts receivable, subtract the allowance for uncollectible accounts from the accounts receivable.

Step-by-step explanation:

To calculate the net accounts receivable, we need to consider the estimated uncollectible accounts. The allowance for uncollectible accounts represents the amount that the center expects will not be collected from the accounts receivable. In this case, the allowance for uncollectible accounts is $2,800. To calculate the net accounts receivable, we subtract the allowance for uncollectible accounts from the accounts receivable.

Net accounts receivable = Accounts Receivable - Allowance for Uncollectible Accounts
Net accounts receivable = $98,000 - $2,800
Net accounts receivable = $95,200