Question: The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2012, before any adjustment: Accounts Receivable = $100,000; Allowance for Uncollectible Accounts = $3,000 ( debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.
Required: 1. Estimate the amount of uncollectible receivables.
2. Record the adjustment for uncollectible accounts on December 31, 2012.
3. Calculate the net realizable value of accounts receivable.