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:
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 | $4,800 |
| Blue Dun Flies | Oct. 10 | 4,700 |
| Cicada Fish Co. | Sept. 29 | 8,600 |
| Deschutes Sports | Oct. 20 | 7,000 |
| Green River Sports | Nov. 7 | 3,500 |
| Smith River Co. | Nov. 28 | 2,200 |
| Western Trout Company | Dec. 7 | 6,900 |
| 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 | 2 |
| 3160 days past due | 12 |
| 6190 days past due | 28 |
| 91120 days past due | 41 |
| 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 $3,500 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? |
ALREADY DID HALF OF IT, BUT SOMEONE FIX WHAT IS COATED OR MARKED WITH RED, CANT GET CORRECT AMOUNT, BUT ALL THE INFORMATION IS THERE TO FIND IT IF YOU ARE BETTER AT CALCULATING THEN I AM.
Customer Due Date Number of Days Past Due Adams Sports & Flies May 22, 2014 223 days Blue Dun Flies Oct. 10, 2014 82 days Cicada Fish Co. Sept. 29, 2014 93 days Deschutes Sports Oct. 20, 20Y4 72 days Green River Sports Nov. 7, 20Y4 54 days Smith River Co. Nov. 28, 20Y4 33 days Western Trout Company Dec. 7, 20Y4 24 days Wolfe Sports Jan. 20, 2015 0 days Aging of Receivables Schedule December 31, 20Y4 1 Days Past Due Days Past Due Days Past Due 2 Customer Balance Not Past Due 1-30 31-60 61-90 3 AAA Outfitters 20,500.00 20,500.00 4. Brown Trout Fly Shop 7,600.00 7,600.00 5 6 Zigs Fish Adventures 3,900.00 3,900.00 7 Subtotals 1,319,300.00 758,200.00 299,000.00 129,300.00 36,900.00 8 Adams Sports & Flies 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 9 Blue Dun Flies 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 10 Cicada Fish Co. 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 10 Cicada Fish Co. 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 11 Deschutes Sports 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 12 Green River Sports 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 13 Smith River Co. 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 14 Western Trout Company 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 15 Wolfe Sports 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 16 Totals $1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 17 Percentage uncollectible 18 Estimate of uncollectible accounts $11,698.00 $42.00 3,900.00 3,900.00 1,319,300.00 758,200.00 299,000.00 129,300.00 36,900.00 17,400.00 78,500.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 $1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 JOURNAL Score: 18/25 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Dec. 31 Bad Debt Expense 15,198.00 15,198.00 2 Dec. 31 Allowance for Doubtful Accounts 15,198.00 15,198.00 Additional Question X 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $123,567 X Customer Due Date Number of Days Past Due Adams Sports & Flies May 22, 2014 223 days Blue Dun Flies Oct. 10, 2014 82 days Cicada Fish Co. Sept. 29, 2014 93 days Deschutes Sports Oct. 20, 20Y4 72 days Green River Sports Nov. 7, 20Y4 54 days Smith River Co. Nov. 28, 20Y4 33 days Western Trout Company Dec. 7, 20Y4 24 days Wolfe Sports Jan. 20, 2015 0 days Aging of Receivables Schedule December 31, 20Y4 1 Days Past Due Days Past Due Days Past Due 2 Customer Balance Not Past Due 1-30 31-60 61-90 3 AAA Outfitters 20,500.00 20,500.00 4. Brown Trout Fly Shop 7,600.00 7,600.00 5 6 Zigs Fish Adventures 3,900.00 3,900.00 7 Subtotals 1,319,300.00 758,200.00 299,000.00 129,300.00 36,900.00 8 Adams Sports & Flies 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 9 Blue Dun Flies 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 10 Cicada Fish Co. 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 10 Cicada Fish Co. 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 11 Deschutes Sports 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 12 Green River Sports 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 13 Smith River Co. 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 14 Western Trout Company 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 15 Wolfe Sports 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 16 Totals $1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 17 Percentage uncollectible 18 Estimate of uncollectible accounts $11,698.00 $42.00 3,900.00 3,900.00 1,319,300.00 758,200.00 299,000.00 129,300.00 36,900.00 17,400.00 78,500.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 4,700.00 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 8,600.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 6,900.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 $1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 1,361,200.00 JOURNAL Score: 18/25 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Dec. 31 Bad Debt Expense 15,198.00 15,198.00 2 Dec. 31 Allowance for Doubtful Accounts 15,198.00 15,198.00 Additional Question X 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $123,567 X
