Trophy Fish Company supplies flies and fishing gear products 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, 2017: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 AAA Outfitters 20,200 20,200 Brown Trout Fly Shop 7,500 7,500 Zigs Fish Adventures 4,500 4,500 Subtotals 1,288,100 742,400 291,300 118,700 38,700 16,300 80,700 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance May 22 $4,500 Adams Sports and Flies Blue Dun Flies Oct. 10 4,500 Cicada Fish Co. Sept. 29 8,500 Deschutes Sports Oct. 20 6,500 Green River Sports Nov. 7 3,900 Smith River Co. Nov. 28 2,600 Western Trout Company Dec. 7 7,300 Wolfe Sports Jan. 20 3,900 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1 % 1-30 days past due 2 31-60 days past due 9 61-90 days past due 30 91-120 days past due 38 Over 120 days past due 77 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 223 days Adams Sports and Flies May 22 Blue Dun Flies Oct. 10 82 days Cicada Fish Co. Sept. 29 96 X days Deschutes Sports Oct. 20 72 days Green River Sports Nov. 7 54 days Smith River Co. Nov. 28 33 days Western Trout Company Dec. 7 24 days Wolfe Sports Jan. 20 o days Feedback Check My Work Count the number of days after the due date up to December 31. Do not include the due date in your count. Remember that not all months have an equal number of days. Learning Objective 4. 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. Trophy Fish Company Aging of Receivables Schedule December 31, 2017 Customer Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 AAA Outfitters 20,200 20,200 Brown Trout Fly Shop 7,500 7,500 4500 4500 Zigs Fish Adventures Subtotals 1,288,100 742,400 291,300 118,700 38,700 16,300 80,700 Adams Sports and Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports 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. Trophy Fish Company Aging of Receivables Schedule December 31, 2017 Customer Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 20,200 AAA Outfitters Brown Trout Fly Shop 20,200 7,500 7,500 4500 4500 Zigs Fish Adventures Subtotals Adams Sports and Flies 1,288,100 742,400 291,300 118,700 38,700 16,300 80,700 Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company DDDD nau (2011) Wolfe Sports Totals Percent uncollectible (%) % % % % % % Estimate of uncollectible accounts 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $ 109,300 X Feedback Check My Work Add the accounts into the aging schedule based on their number of days past due. Apply the respective uncollectible percentage to the total receivables in each days past due group and the not past due group. Learning Objective 4. 4. Assume that the allowance for doubtful accounts for Trophy Fish has a credit balance of $3,200 before adjustment on December 31, 2017. Journalize the adjustment for uncollectible accounts. Dec. 31 Bad Debt Expense 109,300 X Allowance for Doubtful Accounts 109,300 Feedback Check My Work The amount of bad debt expense is affected by the balance in the allowance account. Learning Objective 4. 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 overstated by because the allowance for doubtful accounts would be understated by In addition, the stockholders' equity (retained earnings) would be overstated by $ because bad debt expense would be understated and net income overstated by on the income statement