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 3 1-60 61-90 91-120 Over 120 AAA Outfitters 19,800 19,800 Brown Trout Fly Shop --------7,000.-------------------7,000.------------ - - - - 42,600 19,300 76,500 Zigs Fish Adventures 3,500 3,500 Subtotals 1,298,300 751,000 281,900 127,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports and Flies May 22 $5,100 Blue Dun Flies Oct. 10 4,600 Cicada Fish Co. Sept. 29 8,600 Deschutes Sports Oct. 20 6,500 Green River Sports Nov. 7 3,900 Smith River Co. Nov. 28 2,700 Western Trout Company Dec. 7 6,800 Wolfe Sports Jan. 20 4,100 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due 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 1 223 days Blue Dun Flies Oct. 10 83 x days Cicada Fish Co. Sept. 29 94 x days Deschutes Sports Oct. 20 73 x days Green River Sports Nov. 7 55 x days Smith River Co. Nov. 28 34 x days Western Trout Company 25 x days Wolfe Sports Jan. 20 0 days Dec. 7 Feedback 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 19,800 19,800 Brown Trout Fly Shop 7,000 7,000 3500 1,298,300 751,000 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 $U Feedback 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Feedback 4. Assume that the allowance for doubtful accounts for Trophy Fish has a credit balance of $4,800 before adjustment on December 31, 2017. Journalize the adjustment for uncollectible accounts. Dec. 31 Feedback 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? by $ On the balance sheet, assets would be equity (retained earnings) would be income statement. by $ by s because the allowance for doubtful accounts would be because bad debt expense would be . In addition, the stockholders' by on the and net income Feedback