Gaterburg Hospital’s general ledger contains the following unadjusted account balances, among others, for December 31, 20X5:

The following additional information is available:

1. Of the December 31, 20X5, accounts receivable, it is estimated that 17 percent will prove to be uncollectible due to the following:

a. Contractual adjustments, 7 percent

b. Charity care adjustments, 6 percent

c. Bad debt expense, 4 percent

2. The hospital building was acquired on January 1, 20X1. It has an estimated useful life of 40 years and an estimated salvage value of $100,000.

3. On January 1, 20X1, the hospital acquired $400,000 of equipment having an estimated useful life of 12 years and an estimated salvage value of 10 percent. Additional equipment, costing $50,000 and acquired on May 1, 20X5, has an estimated useful life of eight years and an estimated salvage value of $2,000.

Required: (1) Prepare, in general journal form, the necessary adjusting entries at December 31, 20X5. (2) Indicate the manner in which receivables should be presented in the hospital’s December 31, 20X5, balance sheet. (3) Indicate the presentation of plant assets in the hospital’s December 31, 20X5, balance sheet.