Instructions 1 Not Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Past 3 Customer Balance 1-30 31-60 61-90 91-120 Over 120 Due 20,900.00 4 AAA Outfitters Brown Trout Fly Shop 20,900.00 7,000.00 5 7,000.00 6 7 Zigs Fish Adventures . 4,000.00 1,284,400.00 4,000.00 281,800.00 9 Subtotals 752,900.00 110,100.00 41,200.00 19,800.00 78,600.00 The following accounts were unintentionally omitted from the aging schedule: Balance Customer Adams Sports & Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Due Date May 22, 2048 Oct. 10. 2016 $4,800 4,900 Sept. 29, 20Y6 Oct. 20, 2018 8.100 7,000 3,300 2.400 Green River Sports Smith River Co. Western Trout Company Wolfe Sports Nov. 7. 20Y6 Nov. 28, 20Y6 , Dec. 7. 2018 Jan 20, 2017 7,300 4,600 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 9 31-60 days past due 81-90 days past due 29 38 91-120 days past due Over 120 days past due 75 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. 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. 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 Company has a debit balance of 54,800 before adjustment on December 31, 2016. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered 5. Assuming that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? Starting Question 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, 2076 days Blue Dun Flies days Cicada Fish Co. Oct 10, 20Y6 Sept. 29, 2076 Oct 20, 2048 days Deschutes Sports days Green River Sports Nov. 7. 20Y days Smith River Co. Nov. 28, 20Y8 days Western Trout Company Dec. 7. 20Y6 days Wolfe Sports Jan. 20. 2017 days Aging of Receivables Schedule 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 Aging of Receivables Schedule December 31, 2048 1 Days Past Due Days Past Due Days Past Due Days Past Due 31-60 Dobele Days Past Due 2 Customer Balance Not Past Due 1-30 61-90 91-120 Over 120 3 AAA Outfitters 20,900.00 20,900.00 4 Brown Trout Fly Shop 7,000.00 7,000.00 1 S S 1 1 6 Zigs Fish Adventures 4,000.00 4,000.00 Subtotals 1284,400.00 752,900.00 281,800.00 110,100.00 41,200.00 19,800.00 78.600.00 Adams Sports & Flies 9 Blue Dun Flies 10 Cicada Fish Co. 1: Deschutes Sports 12 Green River Sports 13 Smith River CO 14 Western Trout Company 15 Wolfe Sports 16 Total 17 Percentage uncollectible 19 Estimate of uncollectible accounts Additional Question 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule $ Journal 4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of S4,800 before adjustment on December 31, 2016. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Final Question Tab x 5. Assuming that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? On the balance sheet, assets would be by because the allowance for doubtful accounts would be by . In addition, the owner's capital account would be by because bad debt expense would be and net income by on the income statement
