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, 20Y7:

			Not		Days Past Due
			Past
Customer	Balance		Due		1-30		31-60		61-90		91-120		Over 120
AAA Outfitters	19,900		19,900
Brown Trout Fly Shop	7,000						7,000
Zigs Fish Adventures	4,300				4,300
Subtotals	1,291,400		743,700		285,400		116,000		41,100		24,400		80,800

The following accounts were unintentionally omitted from the aging schedule:

Customer	Due Date		Balance
Adams Sports and Flies		May 22	$5,200
Blue Dun Flies		Oct. 10	4,500
Cicada Fish Co.		Sept. 29	8,800
Deschutes Sports		Oct. 20	7,200
Green River Sports		Nov. 7	3,200
Smith River Co.		Nov. 28	2,700
Western Trout Company		Dec. 7	6,900
Wolfe Sports		Jan. 20	4,500

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	3
31-60 days past due	12
61-90 days past due	28
91-120 days past due	42
Over 120 days past due	79

Required:

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 and Flies	May 22	days
Blue Dun Flies	Oct. 10	days
Cicada Fish Co.	Sept. 29	days
Deschutes Sports	Oct. 20	days
Green River Sports	Nov. 7	days
Smith River Co.	Nov. 28	days
Western Trout Company	Dec. 7	days
Wolfe Sports	Jan. 20	days

Feedback

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, 20Y7
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	19,900	19,900
Brown Trout Fly Shop	7,000			7,000
Zigs Fish Adventures	4300		4300
Subtotals	1,291,400	743,700	285,400	116,000	41,100	24,400	80,800
Adams Sports and Flies
Blue Dun Flies
Cicada Fish Co.
Deschutes Sports
Green River Sports
Smith River Co.
Western Trout Company
Wolfe Sports
Totals
Percent uncollectible (%)		%	%	%	%	%	%
Estimate of uncollectible accounts	$	$	$	$	$	$	$

Feedback

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.

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

Feedback

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 $3,300 before adjustment on December 31, 20Y7. Journalize the adjustment for uncollectible accounts.

Dec. 31

Feedback

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 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.