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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aging of Recelvables Schedule December 31, 20Y6 Days Past Due Over Not Past Balance Due 1-30 31 - 60 61 - 90 91 - 120 120 Customer AAA Outfitters 20,000 20,000 Brown Trout Fly Shop 7,500 7,500 4,000 $ 1,300,000 5,000 4,000 Zigs Fish Adventures $ 750,000 $ 290,000 $ 120,000 40.000 20,000 80,000 Subtotals Adams Sports and Flies Blue Dun Files 4,900 Cicada Fish Co. 8,400 7.000 Deschutes Sports Green River Sports Smith River Co. 3,500 2,400 Western Trout Company 6,800 Wolfe Sports Totals 4,400 5 1,342 400 Percent uncollectible Estimate of uncollectible accounts
Transcribed Image Text:Aging of Recelvables Schedule December 31, 20Y6 Days Past Due Over Not Past Balance Due 1-30 31 - 60 61 - 90 91 - 120 120 Customer AAA Outfitters 20,000 20,000 Brown Trout Fly Shop 7,500 7,500 4,000 $ 1,300,000 5,000 4,000 Zigs Fish Adventures $ 750,000 $ 290,000 $ 120,000 40.000 20,000 80,000 Subtotals Adams Sports and Flies Blue Dun Files 4,900 Cicada Fish Co. 8,400 7.000 Deschutes Sports Green River Sports Smith River Co. 3,500 2,400 Western Trout Company 6,800 Wolfe Sports Totals 4,400 5 1,342 400 Percent uncollectible Estimate of uncollectible accounts
The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 Oct. 10, 20Y6 Sept. 29, 20Y6 $5,000 Blue Dun Flies 4,900 Cicada Fish Co. 8,400 Deschutes Sports Green River Sports Oct 20, 20Y6 7,000 7, 20Y6 Nov. 28, 20Y6 Nov. 3,500 Smith River Co. 2,400 Western Trout Company Dec. 7, 20Y6 6,800 Wolfe Sports Jan. 20, 20Y7 4,400 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible Age Class 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 196 2 10 30 40 80 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, 20Y6. 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?
Transcribed Image Text:The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 Oct. 10, 20Y6 Sept. 29, 20Y6 $5,000 Blue Dun Flies 4,900 Cicada Fish Co. 8,400 Deschutes Sports Green River Sports Oct 20, 20Y6 7,000 7, 20Y6 Nov. 28, 20Y6 Nov. 3,500 Smith River Co. 2,400 Western Trout Company Dec. 7, 20Y6 6,800 Wolfe Sports Jan. 20, 20Y7 4,400 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible Age Class 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 196 2 10 30 40 80 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, 20Y6. 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?
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