E F Days Past Due A Not Past Over 31-60 Customer 4 Acme Industries Inc. 5 Alliance Company Balance 3,000 4,500 Due 3,000 1-30 61–90 90 4,500 21 Zollinger Company 22 Subtotals 5,000 5,000 1,050,000 | 600,000 220,000| 115,000 85,000 30,000 123 45
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
The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals
| Customer | Balance | Dud Date |
| Boyd Industries | $36,000 | April 7 |
| Hodges Company | 11,500 | May 29 |
| Kent Creek Inc. | 6,600 | June 8 |
| Lockwood Company | 7,400 | August 10 |
| Van Epps Company | 13,000 | July 2 |
A. Determine the number of days past clue for each of the preceding accounts as of july 31.
B. Complete the aging of recivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
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