Trophy Fish Company supplies files 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, 2016 1 Not Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Past 5 Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 MA Outfitters 20,200.00 20.200.00 5 Brown Trout Fly Shop 8,000.00 8,000.00 6 7 : Zig Fish Adventures 4,100.00 4,100.00 9 Subtotals 1,304,500.00 74R50001 297,300.00 117,000.00 38,700.00 23.000 79,400,00 The following accounts were unintentionaly omitted from the aging schedule: Due Data Balance $4.900 Customer Adams Sports & Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Westor Trout Company Wolfe Sports May 22, 20Y6 Oct 10, 2046 Sept. 29, 2046 Oct 20, 2046 Nov 7, 20Y6 Nov. 28, 2046 Dec 7, 2016 5.200 8.900 6,600 3.800 2.000 6,400 Jan. 20. 2017 4,400 Trophy Fish has a past history of uncollectible accounts by age category, as folows: Percent Uncollectible Age Class Not past due 1% 3 1-30 days past due 31-60 days past due 10 29 61-90 days past due 91-120 days past due Over 120 days past due 41 79 Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is nor past due, enter a zero 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 doublul 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 $4,700 before adjustment on December 31, 2016. Joumalze the adjusting entry for uncollectible accounts. Rater to the chart of accounts for a sing of the accountitles the company Uses. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the mission affect the balance sheet and income statement? Chart of Accounts CHART OF ACCOUNTS Trophy Fish Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable-Adams Sports Flies 122 Accounts Receivable-Blue Dun Flies EXPENSES 123 Accounts Receivable-Cicada Fish Co. 510 Cost of Merchandise Sold 124 Accounts Receivable-Deschutes Sports 520 Sales Salaries Expense 125 Accounts Receivable-Green River Sports 521 Advertising Expense 522 Depreciation Expense-Store Equipment 126 Accounts Receivable-Smith River Co. 127 Accounts Receivable-Western Trout Company 523 Delivery Expense 128 Accounts Receivable-Wolfe Sports 524 Repairs Expense 129 Allowance for Doubtful Accounts 529 Selling Expenses 131 Interest Receivable 530 Office Salaries Expense 132 Notes Receivable 531 Rent Expense 141 Merchandise Inventory 532 Depreciation Expense-Office Equipment 145 Office Supplies 533 Insurance Expense 146 Store Supplies 534 Office Supplies Expense 151 Prepaid Insurance 535 Store Supplies Expense 536 Credit Card Expense 181 Land 191 Store Equipment 537 Cash Short and Over 192 Accumulated Depreciation-Store Equipment 538 Bad Debt Expense 193 Office Equipment 539 Miscellaneous Expense 194 Accumulated Depreciation Office Equipment 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary 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, 2046 days Blue Dun Flies Oct. 10, 2046 days Cicada Fish Co. Sept. 29, 20Y6 days Deschutes Sports Oct. 20, 2046 days Green River Sports Nov. 7, 2096 days Smith River Co. Nov. 28, 2046 days Western Trout Company Dec. 7, 20Y6 days Wolfe Sports Jan 20, 2017 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. If an amount box does not require an entry, leave it blank. Aging of Receivables Schedule December 31, 20Y6 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 + 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 3 Adams Sports & Flies 9 Blue Dun Flies 10 Cicada Fish Co. 11 Deschutes Sports 12 Green River Sports Smith River Co. 13 Western Trout 14 Company 15 Wolfe Sports 16 Total Percentage 17 uncollectible Estimate of uncollectible 18 accounts Additional Question 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $ 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, 20Y6. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for a listing of the account titles the company uses. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 Final Question Tab 5. Assume 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 owner's capital account would be by because bad debt expense would be and net income by von the income statement