P8-27A Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet [25–35 min] At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:

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P8-27A Accounting for uncollectible accounts using the allowance method,
and reporting receivables on the balance sheet [25–35 min]
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC)
include the following:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . .145,000
Allowance for uncollectible accounts (credit balance) . . .3,500
Requirements
1. Journalize the transactions.
2. Open the Allowance for uncollectible accounts T-account, and post entries
affecting that account. Keep a running balance.
3. Show how Mountain Terrace Medical Center should report net accounts receivable
on its December 31, 2012 balance sheet. Use the three line reporting format.