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, 20Y6: A н Days Past Due Not Past Due 20,000 20,000 2 91-120 Over 120 Customer 4 AAA Outfitters 5 Brown Trout Fly Shop 3 Balance 1-30 31-60 61-90 7,500 7,500 30 Zigs Fish Adventures 31 Subtotals 4,000 4,000 1,300,000 750,000 290,000 120,000 40,000 20,000 80,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance May 22, 20Y6 Oct. 10, 20Y6 Sept. 29, 20Y6 Oct. 20, 20Y6 Adams Sports & Flies $5,000 Blue Dun Flies 4,900 Cicada Fish Co. 8,400 Deschutes Sports Green River Sports 7,000 Nov. 7, 20Y6 3,500 Smith River Co. Nov. 28, 20Y6 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 1% 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. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 3. 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?
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, 20Y6: A н Days Past Due Not Past Due 20,000 20,000 2 91-120 Over 120 Customer 4 AAA Outfitters 5 Brown Trout Fly Shop 3 Balance 1-30 31-60 61-90 7,500 7,500 30 Zigs Fish Adventures 31 Subtotals 4,000 4,000 1,300,000 750,000 290,000 120,000 40,000 20,000 80,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance May 22, 20Y6 Oct. 10, 20Y6 Sept. 29, 20Y6 Oct. 20, 20Y6 Adams Sports & Flies $5,000 Blue Dun Flies 4,900 Cicada Fish Co. 8,400 Deschutes Sports Green River Sports 7,000 Nov. 7, 20Y6 3,500 Smith River Co. Nov. 28, 20Y6 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 1% 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. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 3. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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, 20Y6:
A
н
Days Past Due
Not
Past
Due
20,000 20,000
2
91-120 Over 120
Customer
4 AAA Outfitters
5 Brown Trout Fly Shop
3
Balance
1-30
31-60
61-90
7,500
7,500
30 Zigs Fish Adventures
31 Subtotals
4,000
4,000
1,300,000 750,000 290,000 120,000
40,000 20,000
80,000
Transcribed Image Text:The following accounts were unintentionally omitted from the aging schedule:
Customer
Due Date
Balance
May 22, 20Y6
Oct. 10, 20Y6
Sept. 29, 20Y6
Oct. 20, 20Y6
Adams Sports & Flies
$5,000
Blue Dun Flies
4,900
Cicada Fish Co.
8,400
Deschutes Sports
Green River Sports
7,000
Nov. 7, 20Y6
3,500
Smith River Co.
Nov. 28, 20Y6
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
1%
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.
Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.
3.
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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