Obj. 4 PR 8-2A Aging of receivables; estimating allowance for doubtful accounts Trophy Fish Company supplies 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 receivables schedule as of the end of business on December 31, 20Y4: B D E H F G Days Past Due 1 2 3 Customer 4 AAA Outfitters 5 Brown Trout Fly Shop Not Past Due 20,000 Over 120 1-30 31-60 61-90 91-120 Balance 20,000 7,500 7,500 30 Zigs Fish Adventures 4,000 4,000 31 Subtotals 1,300,000 750,000 290,000 120,000 40,000 20,000 80,000 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year. Customer Due Date Balance Adams Sports & Flies May 22 $5,000 Blue Dun Flies Oct. 10 4,900 Cicada Fish Co. Sept. 29 8,400 Deschutes Sports Oct. 20 7,000 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2,400 Western Trout Company Dec. 7 6,800 Wolfe Sports Jan. 20 4,400 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible 4,000 4,000 30 Zigs Fish Adventures 40,000 20,000 80.000 31 Subtotals 1,300,000 750,000 290,000 120,000 The following accounts were unintentionally omitted from the aging schedule. Assume all cue dates are for the current year except for Wolfe Sports, which is due in the next year. Customer Balance Due Date $5,000 Adams Sports & Flies May 22 Blue Dun Flies Oct. 10 4,900 Cicada Fish Co. Sept. 29 8,400 Deschutes Sports Oct. 20 7,000 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2.400 Western Trout Company Dec. 7 6.800 Wolfe Sports Jan. 20 4,400 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible Not past due 196 1-30 days past due 2 31-60 days past due 10 61-90 days past due 91-120 days past due 30 40 Over 120 days past due 80 Instructions 1. Determine the number of days past due for each of the preceding accounts. 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 $3,600 before adjustment on December 31. Journalize the adjusting entry for uncollectible Assume that the adjusting entry in (1) was inadvertently omitted, how would the omis sion affect the balance sheet and income statement? accounts. 5
