The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31: 1 A B C D E F G 2 Days Past Due Days Past Due Days Past Due Days Past Due 3 Customer Balance Not Past Due 1-30 31-60 61-90 Over 90 4 Acme Industries Inc. 3,000.00 3,000.00 5 Alliance Company 4,600.00 4,600.00 6 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 7 Zollinger Company 4,900.00 4,900.00 8 Subtotals 1,052,200.00 602,500.00 219,400.00 114,100.00 85,800.00 30,400.00 The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: Customer Balance Due Date Boyd Industries $44,000 April 7 Hodges Company 21,200 May 29 Kent Creek Inc. 7,300 June 8 Lockwood Company 13,300 August 10 Van Epps Company 13,900 July 2 Required: A. Determine the number of days past due for each of the preceding accounts as of July 31. If an account is not past due, enter a zero. 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.
The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31: 1 A B C D E F G 2 Days Past Due Days Past Due Days Past Due Days Past Due 3 Customer Balance Not Past Due 1-30 31-60 61-90 Over 90 4 Acme Industries Inc. 3,000.00 3,000.00 5 Alliance Company 4,600.00 4,600.00 6 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 7 Zollinger Company 4,900.00 4,900.00 8 Subtotals 1,052,200.00 602,500.00 219,400.00 114,100.00 85,800.00 30,400.00 The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: Customer Balance Due Date Boyd Industries $44,000 April 7 Hodges Company 21,200 May 29 Kent Creek Inc. 7,300 June 8 Lockwood Company 13,300 August 10 Van Epps Company 13,900 July 2 Required: A. Determine the number of days past due for each of the preceding accounts as of July 31. If an account is not past due, enter a zero. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31:
|
1
|
A
|
B
|
C
|
D
|
E
|
F
|
G
|
|
2
|
|
|
|
Days Past Due
|
Days Past Due
|
Days Past Due
|
Days Past Due
|
|
3
|
Customer
|
Balance
|
Not Past Due
|
1-30
|
31-60
|
61-90
|
Over 90
|
|
4
|
Acme Industries Inc.
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3,000.00
|
3,000.00
|
|
|
|
|
|
5
|
Alliance Company
|
4,600.00
|
|
4,600.00
|
|
|
|
|
6
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
|
7
|
Zollinger Company
|
4,900.00
|
|
|
4,900.00
|
|
|
|
8
|
Subtotals
|
1,052,200.00
|
602,500.00
|
219,400.00
|
114,100.00
|
85,800.00
|
30,400.00
|
The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals:
|
Customer
|
Balance
|
Due Date
|
| Boyd Industries | $44,000 | April 7 |
| Hodges Company | 21,200 | May 29 |
| Kent Creek Inc. | 7,300 | June 8 |
| Lockwood Company | 13,300 | August 10 |
| Van Epps Company | 13,900 | July 2 |
Required:
| A. | Determine the number of days past due for each of the preceding accounts as of July 31. If an account is not past due, enter a zero. |
| 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. |
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