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PR 9-2A Aging of receivables; estimating allowance for doubtful accounts OBJ.4 Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfit-
PR 9-2A Aging of receivables; estimating allowance for doubtful accounts OBJ.4 Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfit- ters 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, 20Y6: A B D ETF G H Not Days Past Due 2 Past 3 Customer Balance 1-30 31-60 61-90 91-120 Over 120 4 AAA Outfitters 20,000 20,000 5 Brown Trout Fly Shop 7,500 7,500 1 Due 30 Zigs Fish Adventures 31 Subtotals 32 4,000 4,000 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: Customer Due Date Balance Adams Sports & Flies May 22.2016 $5.000 Blue Dun Flies Oct. 10,2046 4.900 Cicada Fish Co. Sept. 29,2086 8.400 Deschutes Sports Oct.20.2076 2.000 Green River Sports Nov].2016 3.500 Smith River Co. Nov. 28,2016 2.400 Western Trout Company Dec. 7. 2016 6.800 Wolfe Sports Jan. 20.2047 4.400 Trophy Fish has a past history of uncollectible_accounts by age category as follows: Percent Age Class Uncollectible Not past due 19 1-30 days past due 2 31-60 days past due 61-90 days past due 30 21-120 days pastdue 40 Qyer 120 days past due 80 lostructions 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, 20Y6. Journalize the adjusting entry for uncollectible accounts. 5. Assuming that the adjusting entry_in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? 10
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