Aging of receivables; estimating allowance for doubtful accounts Chart of Accounts Starting Question Aging of Receivables Schedule Instructions Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfiters 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, 20Y6 1 Not Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 AAA Outfitters 20,700.00 20,700.00 4 sBrown Trout Fly Shop 7.100.00 7100.00 7 Zigs Fish Adventures 3,900.00 3.900,00 Subtotals 1.307400.00 18.100.00 81700.00 756.200.00 292.000.00 118,400.00 41.000.00 Previous Next Check My Work 3 more Check My Work uses remaining A16 AM Calculator The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 $5,100 Oct. 10, 20Y6 Blue Dun Flies 5,400 Cicada Fish Co. Sept. 29, 20Y6 8200 Deschutes Sports Oct. 20, 20Y6 7,100 Green River Sports Nov. 7, 20Y6 3,000 Smith River Co 2,600 Nov. 28, 20Y6 Western Trout Company Dec. 7, 20Y6 6,600 Wolfe Sports Jan. 20, 20Y7 4,900 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1% 3 1-30 days past due 31-60 days past due 61-90 days past due 32 41 91-120 days past due 85 Over 120 days past due Previous Next Check My Work 3 more Check My Work uses remaining eBook Calculator Trophy Fish has a past history of uncollectible accounts by age category, as follows Age Class Percent Uncollectible Not past due 1% 1-30 days past due 3 31-60 days past due 9 61-90 days past due 32 91-120 days past due 41 Over 120 days past due 85 Required: Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. 1. 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals Estimate the alowance for doubtful accounts, based on the aging of receivables schedule 3. 4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of $4,400 before aqustment on December 31, 20Y6 Journalize the adusting entry for uncollectible accounts Refer to the chart of accounts for a listing of the account titles the company Uses 5. Assume that the adjusting entry in (4) was inadvertently omited, how would the omission affect the balance sheet and income statement? Calculator Chart of Accounts CHART OF ACCOUNTS Trophy Fish Compamy General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable Adams Sports&Fles 122 Accounts Recevable-Blue Dun Flies EXPENSES 123 Accounts Receivable-Cicada Fish Co 510 Cost of Menchandise Sald 124 Accounts Recevable-Deschutes Sports 520 Sales Salaries Expense 125 Accounts Recevable-Green River Sports 521 Advertising Expense 125 Accounts Receivable-Smith River Co 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Westem Trout Company 523 Delivery Expense 128 Accounts Receivable-Wolte Sports 524 Repairs Expense 129 Allowance for Doubttul Accounts 529 Seling Expentes 131 Interest Receivable 530 Office Salanes Expense 132 Notes Recevable 531 Rent Expense check My Work 3 more Check My Work uses remaining Previous Next $17AM NO4 d 12/1/207 8 145 Office Supplies 533 Insurance Expense 146 Store Supplies 534 Office Supplies Expense 151 Prepaid Insurance 535 Store Supplies Expense 181 Land 536 Credit Card Expense 191 Store Equipment 537 Cash Short and Over 192 Accumulated Depreciation-Store Equipment 538 Bad Debt Expense 193 Office Equipment 539 Miscellaneous Expense 194 Accumulated Depreciation-Office Equipment 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY A.. 310 Owner, Capital TA 311 Owner, Drawing 312 Income Summary TA.. Previous 3 more Check My Work uses remaining Check My Work Calculator eBook 1. Determine the number of days past due for each of the preceding accounts Ifan account is not past due, enter a zero Number of Days Past Due Due Date Customer May 22, 20Y6 days Adams Sports & Flies days Oct 10, 20Y6 Blue Dun Flies days Sept. 29, 20Y6 Cicada Fish Co days Oct 20, 20Y6 Deschutes Sports days Nov. 7, 20Y6 Green River Sports days Smith River Co Nov 28, 20Y6 days Western Trout Company Dec 7, 20YS days Jan 20, 20Y7 Wolfe Sports Points Feedback Y Check My Work Count the number of days ater the due date up to December 31 Do not include the due date in your count Remember that not all months have an ege number of days Previous more Check My Work uses remaning Check Hy Work 6 K H Aging of Receivables Schedule Saded cels hae feed 2. Complete the aging of recevables schedule by adding the omited accounts to the bottom of the schedule and spdating the totals f an amount box does not require an entry, leave t bilank Question not attempted. Score: 0/1721 Aging of Recevables Schedule December 31, 20Y6 Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 1-120 Over 120 61-90 Not Past Due 1-30 51-60 Balance Customer 20700.00 20700,00 MA Oufiters 7100.00 7.100.00 4Brown Trout Fly Shop 3.900 00 590000 Zios Fish Adventures EL00.00 1800.00 4100000 140000 75620000 29000.00 130740000 Subtotals Adams Sports &Fies Blue Dun Fies .Cimt h C sal Previous 3 more Check My Work uses remaining Check My Wok 9M AM 12/1/2019 hp use M Zigs Fish Adventures 3,900.00 3,900.00 7 Subtotals 1,307.400.00 756,200.00 292.000.00 118,40000 41,000.00 18.100.00 Adams Sports &Flies 8170000 Blue Dun Flies 10 Cicada Fish Co Deschutes Sports Green River Sports 12 Smith River Co 13 Westem Trout 14 Company Wolfe Sports Total Percentage uncollectible Estimate of uncollectible accounts 0/36 Points Next Previous Check My Work 3 more Check My Work uses remaining 918 AM 12/1/2019 Oo K Shaded cels have feedcack 3. Estimate the alowance for doublful accounts, based on the aging of receivables achedule K Ponts 0/1 Feedback v Check My Work The analysis of receivables method places more emphasis on the net realizable value of the recevables and, thus, emphasizes the balance sheet That is, the amount of the adjusting entry is the amount that will yield an adjusted balance for Allowance for Doubllul Accounts equal to that estimated by the aging schedule The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less kely that t wl be colected Journal Shaded cels have feedback 4 Astume that the allowance for doubfu account for Trooty Fsh Company has a deot balance of $4 400 before autment on December 31 20Joumae he Previous Next Check My Wark 3 more Check My Work uses remaining 918 AM 12/1/209 8 6 K H G pue M JOumall Staded calsae a 4 Assume that the allowance for doubful accounts for Trophy Fish Company has a debit balance of $4,400 before adjustment on December 31, 20Y6 Jounalze he adusting entry for uncolectible accounts Refer to the chart of accounts for a lsting of the account ttles the company uses Question not attempted. JOURNAL ACCOUNTING EQUATION Score: 0/25 DESCRIPTION POST RE CREDT LIABUTIES EQUITY DATE DERIT ASSETS 1 I Points 10/5 Feedback YCheck My Work The amount of bad debt expense is affected by the balance in the allowance account Next Previous 3 more Check My Work uses remaining Check My Work 918 AM 12/1/2019 M 8