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 November 30: Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 90 Academy Industries Inc. 4,100 4,100 Ascent Company 3,300 3,300 Zoot Company 9,900 9,900 Subtotals 808,600 488,400 177,900 77,600 40,400 24,300 The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above: Customer Balance Due Date Conover Industries $11,300 July 11 Keystone Company 8,100 September 19 Moxie Creek Inc. 16,200 October 16 Rainbow Company 9,700 November 5 Swanson Company 21,800 December 21 a. Determine the number of days past due for each of the preceding accounts as of November 30. If an account is not past due, enter 0. Customer Due Date Number of Days Past Due Conover Industries July 11 Keystone Company September 19 Moxie Creek Inc. October 16 Rainbow Company November 5 Swanson Company December 21 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 November 30 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. 4,100 4,100 Ascent Company 3,300 Zoot Company 9,900 9,900 Subtotals 808,600 488,400 177,900 77,600 40,400 24,300 Conover Industries Keystone Company Moxie Creek Inc. Rainbow Company Swanson Company Totals
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. | 4,100 | 4,100 | ||||||||||
| Ascent Company | 3,300 | 3,300 | ||||||||||
| Zoot Company | 9,900 | 9,900 | ||||||||||
| Subtotals | 808,600 | 488,400 | 177,900 | 77,600 | 40,400 | 24,300 |
The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above:
| Customer | Balance | Due Date | |
| Conover Industries | $11,300 | July 11 | |
| Keystone Company | 8,100 | September 19 | |
| Moxie Creek Inc. | 16,200 | October 16 | |
| Rainbow Company | 9,700 | November 5 | |
| Swanson Company | 21,800 | December 21 |
a. Determine the number of days past due for each of the preceding accounts as of November 30. If an account is not past due, enter 0.
| Customer | Due Date | Number of Days Past Due |
| Conover Industries | July 11 | |
| Keystone Company | September 19 | |
| Moxie Creek Inc. | October 16 | |
| Rainbow Company | November 5 | |
| Swanson Company | December 21 |
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 | ||||||
| November 30 | ||||||
| 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. | 4,100 | 4,100 | ||||
| Ascent Company | 3,300 | |||||
| Zoot Company | 9,900 | 9,900 | ||||
| Subtotals | 808,600 | 488,400 | 177,900 | 77,600 | 40,400 | 24,300 |
| Conover Industries | ||||||
| Keystone Company | ||||||
| Moxie Creek Inc. | ||||||
| Rainbow Company | ||||||
| Swanson Company | ||||||
| Totals |
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