Blue Ribbon Flies Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the

Question:

Blue Ribbon Flies Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Blue Ribbon Flies prepared the partially completed aging-of-receivables schedule as of the end of business on December 31, 2006, shown at the top of the following page.

The following accounts were unintentionally omitted from the aging schedule.

Blue Ribbon Flies Company has a past history of uncollectible accounts by age category, as follows:
Percentage
Age Class Uncollectible
Not past due ......... 1%
1â€“30 days past due ...... 4
31â€“60 days past due ...... 8
61â€“90 days past due ......25
91â€“120 days past due .....40
Over 120 days past due .....80

Instructions
1. Determine the number of days past due for each of the preceding accounts.
2. Complete the aging-of-receivables schedule.
3. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule.
4. Assume that the allowance for doubtful accounts for Blue Ribbon Flies Company has a debit balance of $2,800 before adjustment on December 31, 2006. Journalize the adjusting entry for uncollectibleaccounts.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...