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, 20Y6: 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 20,200.00 20,200.00 5 Brown Trout Fly Shop 8,000.00 8,000.00 6 ~~~ ~ ~ ~ ~ ~ ~ ~~~ 7 8 Zigs Fish Adventures 4,100.00 4,100.00 9 Subtotals 1,304,500.00 748,300.00 297,300.00 117,000.00 38,700.00 23,800.00 79,400.00 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 $4,900 Blue Dun Flies Oct. 10, 20Y6 5,200 Cicada Fish Co. Sept. 29, 20Y6 8,900 Deschutes Sports Oct. 20, 20Y6 6,600 Green River Sports Nov. 7, 20Y6 3,800 Smith River Co. Nov. 28, 20Y6 2,000 Western Trout Company Dec. 7, 20Y6 6,400 Wolfe Sports Jan. 20, 20Y7 4,400 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 10 61–90 days past due 29 91–120 days past due 41 Over 120 days past due 79 Required: 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, 20Y6:

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	20,200.00	20,200.00
5	Brown Trout Fly Shop	8,000.00			8,000.00
6	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
7
8	Zigs Fish Adventures	4,100.00		4,100.00
9	Subtotals	1,304,500.00	748,300.00	297,300.00	117,000.00	38,700.00	23,800.00	79,400.00

The following accounts were unintentionally omitted from the aging schedule:

Customer	Due Date	Balance
Adams Sports & Flies	May 22, 20Y6	$4,900
Blue Dun Flies	Oct. 10, 20Y6	5,200
Cicada Fish Co.	Sept. 29, 20Y6	8,900
Deschutes Sports	Oct. 20, 20Y6	6,600
Green River Sports	Nov. 7, 20Y6	3,800
Smith River Co.	Nov. 28, 20Y6	2,000
Western Trout Company	Dec. 7, 20Y6	6,400
Wolfe Sports	Jan. 20, 20Y7	4,400

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	10
61–90 days past due	29
91–120 days past due	41
Over 120 days past due	79

	Required:
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 $4,700 before adjustment on December 31, 20Y6. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for a listing of the account titles the company uses.
5.	Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?

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