Trophy Fish Company supplies flies 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, 20Y4:

1			Not	Days Past Due	Days Past Due	Days Past Due	Days Past Due	Days Past Due
2			Past
3	Customer	Balance	Due	1-30	31-60	61-90	91-120	Over 120
4	AAA Outfitters	20,100.00	20,100.00
5	Brown Trout Fly Shop	7,300.00			7,300.00
6	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
7
8	Zigs Fish Adventures	4,200.00		4,200.00
9	Subtotals	1,328,100.00	759,100.00	299,900.00	125,700.00	44,600.00	19,100.00	79,700.00

The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year.

Customer	Due Date	Balance
Adams Sports & Flies	May 22	$4,500
Blue Dun Flies	Oct. 10	5,400
Cicada Fish Co.	Sept. 29	7,900
Deschutes Sports	Oct. 20	6,500
Green River Sports	Nov. 7	3,000
Smith River Co.	Nov. 28	2,200
Western Trout Company	Dec. 7	6,700
Wolfe Sports	Jan. 20	4,200

Trophy Fish has a past history of uncollectible accounts by age category, as follows:

Age Class	Percent Uncollectible
Not past due	1%
130 days past due	3
3160 days past due	11
6190 days past due	29
91120 days past due	38
Over 120 days past due	84

1.

Determine the number of days past due for each of the preceding accounts. If an account is not 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 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 $3,200 before adjustment on December 31. 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?

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

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	20,100.00	20,100.00
4	Brown Trout Fly Shop	7,300.00			7,300.00
5	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
6	Zigs Fish Adventures	4,200.00		4,200.00
7	Subtotals	1,328,100.00	759,100.00	299,900.00	125,700.00	44,600.00	19,100.00	79,700.00
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

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

. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of $3,200 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

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.