. Determine the number of days past due for each of the preceding accounts.  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 $3,600 before adjustment on December 31, 2015. Journalize the adjusting entry for uncollectible accounts.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfit- ters 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, 2015:

 

Figure 1 (See Image)

 

The following accounts were unintentionally omitted from the aging schedule:

Customer

Due Date

Balance

Adams Sports & Flies

May 22, 2015

$5,000

Blue Dun Flies

Oct. 10, 2015

$4,900

Cicada Fish Co.

Sept. 29, 2015

$8,400

Deschutes Sports

Oct. 20, 2015

$7,000

Green River Sports

Nov. 7, 2015

$3,500

Smith River Co.

Nov. 28, 2015

$2,400

Western Trout Company

Dec. 7, 2015

$6,800

Wolfie Sports

Jan. 20, 2016

$4,400

 

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

2%

31-60 days past due

10%

61-90 days past due

30%

91-120 days past due

40%

Over 120 days past due

80%

Figure 2

Instructions

1. Determine the number of days past due for each of the preceding accounts. 

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 $3,600 before adjustment on December 31, 2015. Journalize the adjusting entry for uncollectible accounts.

D E FG
Days Past Due
A
H
1
Not
2
Past
91-120 Over 120
Customer
4 AAA Outfitters
5 Brown Trout Fly Shop
1-30
31-60
Balance
20,000
7,500
Due
20,000
61-90
7,500
30 Zigs Fish Adventures
4,000
1,300,000 750,000 290,000 120,000
4,000
31 Subtotals
40,000 20,000
80,000
Transcribed Image Text:D E FG Days Past Due A H 1 Not 2 Past 91-120 Over 120 Customer 4 AAA Outfitters 5 Brown Trout Fly Shop 1-30 31-60 Balance 20,000 7,500 Due 20,000 61-90 7,500 30 Zigs Fish Adventures 4,000 1,300,000 750,000 290,000 120,000 4,000 31 Subtotals 40,000 20,000 80,000
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