Aging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 90 Academy Industries Inc. 3,000 3,000 Ascent Company 4,500 4,500 Zoot Company 5,000 5,000
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Aging of Receivables Schedule
The
| Not | Days Past Due | |||||||||||
| Past | Over | |||||||||||
| Customer | Balance | Due | 1-30 | 31-60 | 61-90 | 90 | ||||||
| Academy Industries Inc. | 3,000 | 3,000 | ||||||||||
| Ascent Company | 4,500 | 4,500 | ||||||||||
| Zoot Company | 5,000 | 5,000 | ||||||||||
| Subtotals | 1,050,000 | 600,000 | 220,000 | 115,000 | 85,000 | 30,000 |
The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals:
| Customer | Balance | Due Date | |
| Conover Industries | $30,000 | March 22 | |
| Keystone Company | 18,000 | July 1 | |
| Moxie Creek Inc. | 9,000 | July 25 | |
| Rainbow Company | 26,400 | September 10 | |
| Swanson Company | 46,600 | August 3 |
a. Determine the number of days past due for each of the preceding accounts as of August 31. If an account is not past due, enter 0.
| Customer | Due Date | Number of Days Past Due |
| Conover Industries | March 22 | fill in the blank f8506afc4ffb005_1 days |
| Keystone Company | July 1 | fill in the blank f8506afc4ffb005_2 days |
| Moxie Creek Inc. | July 25 | fill in the blank f8506afc4ffb005_3 days |
| Rainbow Company | September 10 | fill in the blank f8506afc4ffb005_4 days |
| Swanson Company | August 3 | fill in the blank f8506afc4ffb005_5 days |
b. 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.
| Kirchhoff Industries | ||||||
| Aging of Receivables Schedule | ||||||
| August 31 | ||||||
| Customer | Balance | Not Past Due | Days Past Due 1-30 | Days Past Due 31-60 | Days Past Due 61-90 | Days Past Due Over 90 |
| Academy Industries Inc. | 3,000 | 3,000 | fill in the blank b86d41089ff3f9e_1 | fill in the blank b86d41089ff3f9e_2 | fill in the blank b86d41089ff3f9e_3 | fill in the blank b86d41089ff3f9e_4 |
| Ascent Company | 4,500 | fill in the blank b86d41089ff3f9e_5 | 4,500 | fill in the blank b86d41089ff3f9e_6 | fill in the blank b86d41089ff3f9e_7 | fill in the blank b86d41089ff3f9e_8 |
| Zoot Company | 5,000 | fill in the blank b86d41089ff3f9e_9 | fill in the blank b86d41089ff3f9e_10 | 5,000 | fill in the blank b86d41089ff3f9e_11 | fill in the blank b86d41089ff3f9e_12 |
| Subtotals | 1,050,000 | 600,000 | 220,000 | 115,000 | 85,000 | 30,000 |
| Conover Industries | fill in the blank b86d41089ff3f9e_13 | fill in the blank b86d41089ff3f9e_14 | fill in the blank b86d41089ff3f9e_15 | fill in the blank b86d41089ff3f9e_16 | fill in the blank b86d41089ff3f9e_17 | fill in the blank b86d41089ff3f9e_18 |
| Keystone Company | fill in the blank b86d41089ff3f9e_19 | fill in the blank b86d41089ff3f9e_20 | fill in the blank b86d41089ff3f9e_21 | fill in the blank b86d41089ff3f9e_22 | fill in the blank b86d41089ff3f9e_23 | fill in the blank b86d41089ff3f9e_24 |
| Moxie Creek Inc. | fill in the blank b86d41089ff3f9e_25 | fill in the blank b86d41089ff3f9e_26 | fill in the blank b86d41089ff3f9e_27 | fill in the blank b86d41089ff3f9e_28 | fill in the blank b86d41089ff3f9e_29 | fill in the blank b86d41089ff3f9e_30 |
| Rainbow Company | fill in the blank b86d41089ff3f9e_31 | fill in the blank b86d41089ff3f9e_32 | fill in the blank b86d41089ff3f9e_33 | fill in the blank b86d41089ff3f9e_34 | fill in the blank b86d41089ff3f9e_35 | fill in the blank b86d41089ff3f9e_36 |
| Swanson Company | fill in the blank b86d41089ff3f9e_37 | fill in the blank b86d41089ff3f9e_38 | fill in the blank b86d41089ff3f9e_39 | fill in the blank b86d41089ff3f9e_40 | fill in the blank b86d41089ff3f9e_41 | fill in the blank b86d41089ff3f9e_42 |
| Totals | fill in the blank b86d41089ff3f9e_43 | fill in the blank b86d41089ff3f9e_44 | fill in the blank b86d41089ff3f9e_45 | fill in the blank b86d41089ff3f9e_46 | fill in the blank b86d41089ff3f9e_47 | fill in the blank b86d41089ff3f9e_48 |
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