Aging of receivables; Estimating Allowance for Doubtful Accounts

Trophy Fish Company spplies flies and fishing gear 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 receivable schudle as of the end of business on December 31, 2013:

Draft:

A B C D E F G H

1. Not Days Past Due

2. Pass

3.Customer Balance Due 1-30 31-60 61-90 91-120 Over120

4.AAA Outfitters 20,000 20,000

5. Brown Trout Fly Shop 7,500 7,500

30 Zigs Fish Adventures 4,000 4,000

31.Subtotals 1300,000 750,000 290,000 120,000 40,000 20,000 80,000

The following accounts were unintentionally omitted from the aging schedule:

Customer Due Date Balance

Adams Sports &Flies May 22, 2013 5000

Blue Dun Flies Oct 10, 2013 4,900

Cicada Fish Co. Sep.29,2013 8,400

Deschutes Sports Oct. 20,2013 7,000

Green River Sports Nov.7,2013 3,500

Smith River Co. Nov. 28,2013 2,400

Western Trout Company Dec. 7,2013 6,800

Wolfe Sports Jan.20,2014 4,400

Trophy Fish has a past history of uncollectible account by age category, as following:

Age Class Percent Uncollectible

Not past due 1%

1-30 days past due 2%

31-60 days past due 10%

61-90 days past due 30%

91-120 days past due 40%

Over 120 days past due 80%

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 & Flies May 22,2013 ___________ days.

Blue Sports Flies Oct.10,2013 ___________days

Cicada Fish Co. Sept.29,2013 ___________days

Deschutes Sports Oct.20,2013 ___________days

Green River Sports Nov. 7,2013 ___________days

Smith River Co. Nov. 28,2013 ____________days

Western Trout Company Dec. 7,2013 ____________days

Wolfe Sports Jan. 20,2014 ____________days

2.Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals

(Draft) Trophy Fish Company

Aging of Receivable Schedule

December 31,2013

customer Balance Not Past Due D-Pdue1-30 D-Pdue 31-60 D-Pdue 61-90 D-Pdue91-120 DPdue over 120

AAA Outfitters 20,000 20,000 _____ ________ _______ ______ ______

Brown Trout Fly Shop 7,500 _________ _______ 7500

Zigs Fish Adventures 4,000 ________ 4,000

Subtotals _______ __________ __________ ___________ _________ ______ _______

1.Adams Sports and Flies ____ _______ ________ __________ _______ __________ _________

2.Blue Dun Flies ________ ________ ________ _________ ________ _______ _________

3.Cicada Fish Co. ________ _________ ________ _________ _________ __________ ______

4.Deschutes Sports

5.Green River Sports

6.Smith River Co.

7. Western Trout Company

8. Wolfe Sports

Totals ________ __________ _____________ ___________ ___________ _________ _________

Percentage uncollectible (%) _______ 1________% 2_______% 10______% 30_______% 40______% 80______%

Estimate of uncollectible accounts $________ $______ $________ $_______ $_______ $_________ $_______

3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $___________.

$. Assume that the allowance for doudtful accounts for Trophy Fish Company has a debt balance of 3,600 before adjustment on December 31,2013. Journalize the entry for uncollectable accounts.

(chart) ________________ _______________

________________ ______________