Response to the following problem:
Parker Hospital's adjusted trial balance at December 31, 20X1, included the following accounts:
Accounts receivable-patients $500,000 Dr.
Allowance for uncollectible accounts:
Bad debts 40,000 Cr.
Contractuals 5o,000 Cr.
Charity service 20,000 Cr.
In 20X2, with respect to the 20X1 accounts receivable, write-offs were made as follows: bad debts, $37,400; contractual adjustments, $51,700; and charity service, $19,200. The remainder of the 20X1 receivables were collected. Parker Hospital's accounts receivable at December 31, 20X2, were $600,000. Estimated uncollectible accounts at that date were bad debts, 9 percent; contractual adjustments, 11 percent; and charity service, 1 percent.
Required: Prepare the receivables section of the hospital's balance sheet as of December 31, 20X2, and present all necessary computations of the amounts included in the presentation.