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: , : Days Past Due Not Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 AAA Outfitters 20,100 20,100 Brown Trout Fly Shop 7,700 7,700 Zigs Fish Adventures 3,700 3,700 Subtotals 1,299,500 750,200 290,900 119,900 40,800 22,600 75,100 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports and Flies May 22 $4,500 Blue Dun Flies Oct. 10 5,000 7,900 Cicada Fish Co. Sept. 29 Deschutes Sports Oct. 20 7,500 Green River Sports Noy. 7 3,600 Smith River Co. Nov. 28 2,500 Western Trout Company Dec. 7 6,900 Wolfe Sports Jan. 20 4,300 Trophy Fish has a past history of uncollectible accounts by age category, as follows: 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 2 31-60 days past due 10 30 61-90 days past due 91-120 days past due Over 120 days past due 38 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 and Flies May 22 days Blue Dun Flies 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. 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 Customer Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 AAA Outfitters 20,100 20,100 Brown Trout Fly Shop 7,700 7,700 3700 3700 1,299,500 750,200 290,900 119,900 40,800 22,600 75,100 Zigs Fish Adventures Subtotals Adams Sports and Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports Totals Percent uncollectible (%) % Estimate of uncollectible accounts $ $ 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $ 4. Assume that the allowance for doubtful accounts for Trophy Fish has a credit balance of $3,000 before adjustment on December 31, 2017. Journalize the adjustment for uncollectible accounts. Dec. 31 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? by $ because the allowance for doubtful accounts would be by $ In addition, the stockholders' equity On the balance sheet, assets would be (retained earnings) would be by $ because bad debt expense would be and net income by $ on the income statement
