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, 20Y6:
Instructions 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, 20Y6: 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 20,900.00 20,900.00 5 Brown Trout Fly Shop 7,000.00 7,000.00 6 7 8 Zigs Fish Adventures 4,000.00 4,000.00 9 Subtotals 1,284,400.00 752,900.00 281,800.00 110,100.00 41,200.00 19,800.00 78,600.00 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 $4,600 Blue Dun Flies Oct. 10, 20Y6 4,900 Cicada Fish Co. Sept. 29, 20Y6 8,100 Deschutes Sports Oct. 20, 2046 7,000 Green River Sports Nov. 7, 20Y6 3,300 Smith River Co. Nov. 28, 2016 2,400 Western Trout Company Dec. 7, 20Y6 7,300 Wolfe Sports Jan. 20, 2017 4,600 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, 2016 223 days Blue Dun Flies Oct. 10, 2046 82 days Cicada Fish Co. Sept. 29, 20Y6 93 days Deschutes Sports Oct. 20, 20Y6 72 days Green River Sports Nov. 7, 2016 54 days Smith River Co. Nov. 28, 20Y6 33 days Western Trout Company Dec. 7, 20Y6 24 days Wolfe Sports Jan. 20, 2017 o days Aging of Receivables Schedule 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. Aging of Receivables Schedule December 31, 20Y6 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 20,900.00 20,900.00 4. Brown Trout Fly Shop 7,000.00 7,000.00 5 6 Zigs Fish Adventures 4,000.00 4,000.00 7 Subtotals 1,284,400.00 752,900.00 281,800.00 110,100.00 41,200.00 19,800.00 78,600.00 8 Adams Sports & Flies 9 Blue Dun Flies 10 Cicada Fish Co. 11 Deschutes Sports 11 Deschutes Sports 12 Green River Sports 13 Smith River Co. 14 Western Trout Company 15 Wolfe Sports 16 Total 17 Percentage uncollectible 18 Estimate of uncollectible accounts Additional Question 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 $4,800 before adjustment on December 31, 20Y6. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 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 understated by $119,271 because the allowance for doubtful accounts would be understated by $119,871 In addition, the owner's capital account would be by because bad debt expense would be and net income by on the income statement. 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 9 61-90 days past due 29 91-120 days past due 38 Over 120 days past due 75 Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter 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 $4,800 before adjustment on December 31, 2016. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 5. Assuming that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement
