Response to the following problem:
During 20X1, Pirate Hospital charged patients' accounts for a total of $3,500,000. Its general ledger at December 31, 20X1 (the end of the fiscal year), shows the following balances:
Patients' accounts receivable $425,000 Dr.
Allowance for uncollectible
accounts-bad debts 4,300 Cr.
Required: Prepare the necessary adjusting entries for estimated bad debts assuming that the bad debts
(1) are estimated at 1 percent of charges,
(2) are estimated at 6 percent of receivables, and
(3) are based on an aging of the receivables and are estimated at $31,900.