Questions 4 and 5

Chapter 9 Receivables477 The following accounts were unintentionally omitted from the aging schedule: Customer Adams Sports & Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports Due Date May 22, 20Y6 $5,000 Oct. 10, 20Y6 4,900 Sept. 29, 20Y6 8,400 Oct. 20, 20Y6 Nov. 7, 20Y6 3,500 Nov. 28, 20Y6 2,400 Dec. Jan. 20, 20Y74,400 Balance 7,000 7,20Y6 6,800 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible Age Class 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 196 2 10 30 40 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, 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? Chapter 9 Receivables477 The following accounts were unintentionally omitted from the aging schedule: Customer Adams Sports & Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports Due Date May 22, 20Y6 $5,000 Oct. 10, 20Y6 4,900 Sept. 29, 20Y6 8,400 Oct. 20, 20Y6 Nov. 7, 20Y6 3,500 Nov. 28, 20Y6 2,400 Dec. Jan. 20, 20Y74,400 Balance 7,000 7,20Y6 6,800 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible Age Class 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 196 2 10 30 40 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, 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