Starting Question

1. Determine the number of days past due for each of the accounts below. If an account is not past due, enter a zero.

Customer	Due Date	Number of Days Past Due
Adams Sports & Flies	May 22, 20Y4	days
Blue Dun Flies	Oct. 10, 20Y4	days
Cicada Fish Co.	Sept. 29, 20Y4	days
Deschutes Sports	Oct. 20, 20Y4	days
Green River Sports	Nov. 7, 20Y4	days
Smith River Co.	Nov. 28, 20Y4	days
Western Trout Company	Dec. 7, 20Y4	days
Wolfe Sports	Jan. 20, 20Y5	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.

Additional Instruction

Aging of Receivables Schedule

December 31, 20Y4

1				Days Past Due	Days Past Due	Days Past Due	Days Past Due	Days Past Due
2	Customer	Balance	Not Past Due	1-30	31-60	61-90	91-120	Over 120
3	AAA Outfitters	20,200.00	20,200.00
4	Brown Trout Fly Shop	8,000.00			8,000.00
5	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
6	Zigs Fish Adventures	4,100.00		4,100.00
7	Subtotals	1,304,500.00	748,300.00	297,300.00	117,000.00	38,700.00	23,800.00	79,400.00
8	Adams Sports & Flies
9	Blue Dun Flies
10	Cicada Fish Co.
11	Deschutes Sports
12	Green River Sports
13	Smith River Co.
14	Western Trout Company
15	Wolfe Sports
16	Totals
17	Percentage uncollectible
18	Estimate of uncollectible accounts

Additional Question

3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.

General Journal

4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of $4,700 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts.

General Journal Instructions

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Final Question

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 stockholders equity (retained earnings) would be by because bad debt expense would be and net income by on the income statement.

Trophy Fish has a past history of uncollectible accounts by age category, as follows: 1. Detemine the number of days past due for each of the precealng accounts. If an account is not past cue entar a zero. 2. Complete the aging of recalvables schecule by acoing the omilted accounts to the bottom or the schecule and upolating the totals. 3. Estimate the allowance for doubtul accounts, based on the aging of recelvables schectle. 4. Assume that the aliowance for ooubitu accounts for Trophy Fish Company has a deov balance of $4,700 before agustment on December 31. Joumalie the adusting entry for uncolectble accounts. 5. Assuming that the agjusting enty in (4) was inadvertenty omuted, how would the omission awect the balance sheet and income statement? Trophy Fish has a past history of uncollectible accounts by age category, as follows: 1. Detemine the number of days past due for each of the precealng accounts. If an account is not past cue entar a zero. 2. Complete the aging of recalvables schecule by acoing the omilted accounts to the bottom or the schecule and upolating the totals. 3. Estimate the allowance for doubtul accounts, based on the aging of recelvables schectle. 4. Assume that the aliowance for ooubitu accounts for Trophy Fish Company has a deov balance of $4,700 before agustment on December 31. Joumalie the adusting entry for uncolectble accounts. 5. Assuming that the agjusting enty in (4) was inadvertenty omuted, how would the omission awect the balance sheet and income statement