aging of receivables
Aging of Receivables; Estimating Allowance for Doubtful Accounts Trophy Fish Company supplies flies and fishing gear products to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Trophy Fish prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2017: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 MAA Outfitters 19,900 Brown Trout Shop 7,300 7,300 19.900 121,500 37.400 22.200 75,500 Zigs Fish Adventures 4,400 4,400 Subtotals 1,312,600 755,100 299,900 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports and Fles May 22 35,000 Bue Dun Flies Oct. 10 5,100 Coads Fish Co. Sept. 29 8.100 Deschutes Sports Oct 20 6,600 Green River Sports Nov 7 3,100 Smith River Co. Nov. 28 1,900 Western Trout Company Dec 7 6,800 Wolfe Sports Jan. 20 4,600 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible 3 Not past due 1 % 1-30 days past due 31-60 days past due 9 61-90 days past due 28 91-120 days past due 41 Over 120 days past due 77 Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. Customer Due Date Number of Days Past Due Adams Sports and Files May 22 days Blue Dun Files Oct. 10 days Cicada Fish Co. Sept. 29 days Deschutes Sports Oct. 20 days Green River Sports Nov. 7 days Smith River Co. Nov. 28 days Western Trout Company Dec. 7 days Wolfe Sports Jan, 20 days 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If an amount box does not require an entry, leave it blank. Trophy Fish Company Aging of Receivables Schedule December 31, 2017 Not Past Due Days Post Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Customer Days Past Due 91-120 Days Past Due Over 120 Balance 19.900 19,900 MOutfitters Brown Trout Fly Shop 7.300 7,300 Zig Fish Adventures 4400 4400 755,100 299,900 121,500 1,312,600 37,400 22,200 Subtotais Adams Sports and Fles 75,500 anda Fish Ca Deschutes Sports Green River Sports Smith liver Western Trout Comuany Wolfe Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports Percent collectible () Estimate of uncollectible accounts 1. Estimate the lowance for doubtful accounts, based on the aging of receivables schedule, 4. Assume that the lowance for doubtful accounts for Trophy Fish has a credit balance of $4,300 before adjustment on December 31, 2017. Journalize the adjustment for collectible accounts Dec 31 5. Asume that the adjusting entry in (4) was inadvertently omitted, how would the mission affect the balance sheet and income statement? On the balance sheet wild be because the slowance for doubtful accounts would be holders out in earnings) would be by because bad debt expense would be on the comment by and net income In addition, the by
