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Question: Southwest Pediatrics has the following balances on December 31, 2012, before any adjustment: Accounts Receivable = $120,000; Allowance for Uncollectible Accounts = $2,000 ( debit). On December 31, 2012, Southwest estimates uncollectible accounts to be 10% of accounts receivable.
Required: 1. Record the adjustment for uncollectible accounts on December 31, 2012.
2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.
3. Calculate the net realizable value of accounts receivable.
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