John Prado and Ayana Nicks formed a partnership, dividing income as follows: 1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided equally. Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital balances. Net income for the year was $30,000 Required How much net income should be distributed to Prado and Nicks? Nicks: Trophy Fish Company supples flies and fishing gear to sporting goods stores and outitters throughout the western United States. The accounts receivable clerk for Trophy recelvables schedule as of the end of business on December 31, 20Y6: Days Past Due Days Past Due Days Past Due Days Past Due Not Past Due Days Past Due Custome 1-30 91-120 Over 120 Balance 31-60 61-90 4AAA Outfitters 20,000.00 20,00000 Brown Trout Fly Shop 7,500.00 7,500.00 1 Zigs Fish Adventures 4,000.00 4,000100 754 PM 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, 20Y6 Blue Dun Flies Cicada Fish Co.Sept. 29, 20Y6 Deschutes Sports Green River SportsNov. 7, 20Y6 Smith River Co. Western Trout Company Dec. 7, 20Y6 Wolfe Sports days Oct 10, 20Y6 days days Oct. 20, 20Y6 days days days days days Nov. 28, 20Y6 Jan. 20, 20Y December 31, 20Y6 Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2Curstome Balance Not Past Due 1-30 91-120 31-60 Over 120 61-90 AAA Outfitters Brown Trout Fy Shop 0,000.00 0,000.00 7.500.00 7,500.00 Zigs Fish Adventures 2900000 12000000 4000000 Subtotals 1,300,000.00 750,000.00 40,000.00 20,000.00 80,000.00 290,000.00 1 Adams Sports & Flies 9Blue Dun Flies 10 Cicada Fish Co. 1l Deschutes Sports 12 Green River Sports 7:56 PM Deschutes Sports 12 Green River Sports 15 Smith River Co. Western Trout 34 Compay s Wolfe Sports 36 Totals 17 Percentage uncollectible Estimate of 1 uncollectible accounts 7:57 PM /18/2019 Et Additional Question 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule Zigs Fish Adventures 4,000.00 4,000.00 Assume that the aowance for doubtful accounts tor Trophy Fish Company has a debit balance of 33 600 belore adustment on entry for uncollectble accounts Refer to the chart of accounts for a isting of the account tifles the company uses December 31, 20Y6 Journalizre the ACCOUNTING EQUATION JOURNA ASSETS LAAUTIES Equrry DATE DESCRIPT CREDIT 758 PM 5 Assume that the adjusting entry in (4) was inadvertently ornitted, how would the ornission affect the balance sheet and income stafement? because the allowance for doubtful accounts would be by On the balance sheet, assets would be 7 by because bad debt expense would be In addition, the owners capital account would be by and net income byon the income statement 4,000.00 4,000.00 8 Zigs Fish Adventures
