Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfitters 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, 20Y4: 1 Not Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Past 3 Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 4 AAA Outfitters 19,000.00 19,000.00 5 Brown Trout Fly Shop 7,800.00 7,800.00 6 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 7 8 Zigs Fish Adventures 4,000.00 4,000.00 9 Subtotals 1,301,600.00 743,000.00 294,100.00 120,000.00 40,200.00 23,300.00 81,000.00 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year. Customer Due Date Balance Adams Sports & Flies May 22 $4,800 Blue Dun Flies Oct. 10 5,200 Cicada Fish Co. Sept. 29 8,000 Deschutes Sports Oct. 20 6,600 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2,000 Western Trout Company Dec. 7 6,600 Wolfe Sports Jan. 20 4,000 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1% 1–30 days past due 3 31–60 days past due 12 61–90 days past due 30 91–120 days past due 40 Over 120 days past due 78 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. 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 $3,500 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. Refer to the Chart of Accounts for exact wording of account titles. 5. Assume 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 outfitters 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, 20Y4: 1 Not Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Past 3 Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 4 AAA Outfitters 19,000.00 19,000.00 5 Brown Trout Fly Shop 7,800.00 7,800.00 6 ~~~ ~ ~ ~ ~ ~ ~ ~~~ 7 8 Zigs Fish Adventures 4,000.00 4,000.00 9 Subtotals 1,301,600.00 743,000.00 294,100.00 120,000.00 40,200.00 23,300.00 81,000.00 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year. Customer Due Date Balance Adams Sports & Flies May 22 $4,800 Blue Dun Flies Oct. 10 5,200 Cicada Fish Co. Sept. 29 8,000 Deschutes Sports Oct. 20 6,600 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2,000 Western Trout Company Dec. 7 6,600 Wolfe Sports Jan. 20 4,000 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1% 1–30 days past due 3 31–60 days past due 12 61–90 days past due 30 91–120 days past due 40 Over 120 days past due 78 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. 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 $3,500 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. Refer to the Chart of Accounts for exact wording of account titles. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

1			Not	Days Past Due	Days Past Due	Days Past Due	Days Past Due	Days Past Due
2			Past
3	Customer	Balance	Due	1-30	31-60	61-90	91-120	Over 120
4	AAA Outfitters	19,000.00	19,000.00
5	Brown Trout Fly Shop	7,800.00			7,800.00
6	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
7
8	Zigs Fish Adventures	4,000.00		4,000.00
9	Subtotals	1,301,600.00	743,000.00	294,100.00	120,000.00	40,200.00	23,300.00	81,000.00

The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year.

Customer	Due Date	Balance
Adams Sports & Flies	May 22	$4,800
Blue Dun Flies	Oct. 10	5,200
Cicada Fish Co.	Sept. 29	8,000
Deschutes Sports	Oct. 20	6,600
Green River Sports	Nov. 7	3,500
Smith River Co.	Nov. 28	2,000
Western Trout Company	Dec. 7	6,600
Wolfe Sports	Jan. 20	4,000

Trophy Fish has a past history of uncollectible accounts by age category, as follows:

Age Class	Percent Uncollectible
Not past due	1%
1–30 days past due	3
31–60 days past due	12
61–90 days past due	30
91–120 days past due	40
Over 120 days past due	78

1.	Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero.
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 $3,500 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. Refer to the Chart of Accounts for exact wording of account titles.
5.	Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.