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, 2076: 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 19,000.00 19,000.00 5 Brown Trout Fly Shop 7,800.00 7,800.00 6 w 2 * Zigs Fish Adventures 4,000.00 4,000.00 Subtotals 9 1,301,600.00 745,000.00 294,100.00 120,000.00 40,200.00 23,300.00 81,000.00 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 2016 $4,800 Blue Dun Flies Oct. 10, 20Y6 5,200 Cicada Fish Co. Sept. 29, 20Y6 8,000 Deschutes Sports Oct. 20, 20Y6 6,600 Green River Sports Nov. 7, 20Y6 3,500 Smith River Co. Nov. 28, 20Y6 2,000 Western Trout Company Dec. 7, 20Y6 6,600 Wolfe Sports Jan. 20, 2017 4,000 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 30 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible 1% 3 12 Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due 30 40 78 Required: 1. Determine the number of days past due for each of the preceding accounts. Il 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 doubtlul accounts for Trophy Fish Company has a debit balance of $3,500 before adjustment on December 31, 2016. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for a Neting of the account titles the company uses. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement ? Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 111 Petty Cash 121 Accounts Receivable-Adams Sports & Flies 122 Accounts Receivable-Blue Dun Flies 123 Accounts Receivable-Cicada Fish Co. 124 Accounts Receivable-Deschutes Sports 125 Accounts Receivable-Green River Sports 126 Accounts Receivable-Smith River Co. 127 Accounts Receivable-Western Trout Company 128 Accounts Receivable-Wolfe Sports 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 129 Allowance for Doubtful Accounts 529 Selling Expenses 530 Office Salaries Expense 131 Interest Receivable 132 Notes Receivable 531 Rent Expense 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 151 Prepaid Insurance 181 Land 537 Cash Short and Over 191 Store Equipment 192 Accumulated Depreciation Store Equipment 538 Bad Debt Expense 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, 20Y6 days Blue Dun Flies Oct. 10, 2016 days Cicada Fish Co. Sept. 29, 20Y6 days Deschutes Sports Oct. 20, 20Y6 days Green River Sports Nov. 7. 2046 days Smith River Co. Nov. 28, 2046 days Western Trout Company Dec. 7, 2016 days Wolfe Sports Jan 20, 2017 days Aging of Receivables Schedule December 31, 2046 Days Past Due Days Past Due 1 Days Past Due Days Past Due Days Past Due Customer Balance Not Past Due 1-30 31-60 61.90 91-120 Over 120 3 AMA Outfitters 19,000.00 19,000.00 4 Brown Trout Fly Shop 7,800.00 7,800.00 5 4,000.00 4,000.00 294,100.00 1,301,600.00 743,000.00 120,000.00 40,200.00 7 23,300.00 81,000.00 Zigs Fish Adventures Subtotals . Adams Sports & Flies Blue Dun Flies 9 10 Cicada Fish Co. Deschutes Sports Green River Sports 12 13 Smith River Co. 14 Western Trout Company Wole Sports 15 7 Subtotals 1,301,600.00 743,000.00 294,100.00 120,000.00 40,200.00 23,500.00 81,000.00 # Adams Sports & Flies 9 Blue Dun Flies 10 Cicada Fish Co. 11 Deschutes Sports Green River Sports 12 15 Smith River Co. 14 Western Trout Company Wolfe Sports 15 16 Total 17 Percentage uncollectible Estimate of uncollectible 11 accounts 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Assume that the allowance for doubtur accounts for Trophy Fish Company has a debit balance of $3.500 before adjustment on December 31, 2016. Journakze the adjusting entry for uncollectible accounts. Refer to the chart of accounts for a listing of the accountries the company uses NGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS EQUITY LIBUTES 1 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 addition, the owner's capital account would be Income statement