- Pr 8 2a Aging Of Receivables Estimating Allowance For Doubtful Accounts Trophy Fish Company Supplies Flies And Fishing 1 (43.44 KiB) Viewed 47 times
- Pr 8 2a Aging Of Receivables Estimating Allowance For Doubtful Accounts Trophy Fish Company Supplies Flies And Fishing 2 (48.87 KiB) Viewed 47 times
- Pr 8 2a Aging Of Receivables Estimating Allowance For Doubtful Accounts Trophy Fish Company Supplies Flies And Fishing 3 (38.61 KiB) Viewed 47 times
- Pr 8 2a Aging Of Receivables Estimating Allowance For Doubtful Accounts Trophy Fish Company Supplies Flies And Fishing 4 (29.82 KiB) Viewed 47 times
- Pr 8 2a Aging Of Receivables Estimating Allowance For Doubtful Accounts Trophy Fish Company Supplies Flies And Fishing 5 (31.7 KiB) Viewed 47 times
- Pr 8 2a Aging Of Receivables Estimating Allowance For Doubtful Accounts Trophy Fish Company Supplies Flies And Fishing 6 (35.17 KiB) Viewed 47 times
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 May 22 Adams Sports & Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports Oct. 10 Sept. 29 Oct. 20 Nov. 7 Nov. 28 $5,000 4,900 8,400 7,000 3,500 2,400 6,800 4,400 Dec. 7 Jan. 20 Trophy Fish has a past history of uncollectible accounts by age category, as follows: % Uncollectible 1% 2 10 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 3 Over 120 days past due 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. 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 $3,600 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?
1. Customer Due Date Number of Days Past Due Adams Sports and Flies Blue Dun Files Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports May 22 Oct. 10 Sept. 29 Oct. 20 Nov. 7 Nov. 28 Dec. 7 Jan. 20
O 2., 3. R Aging of Receivables Schedule December 31, 2014 Days Pasta Customer Not Past Due Balance 1.30 Over 120 3160 91 120 $ $ 20,000 AAA Outfitters Brown Trout Fly Shop 20,000 7,500 s 7.500 4,000 5 290,000 $750,000 $120000 5 40.000 20 000 5 30 000 Zigs Fish Adventures Subtotals Adams Sports and Flies Blue Dun Files Cicada Fish Co Deschutes Sports Green River Sports Smith River Co Western Trout Company Wolte Sports Totals Percent uncollectible Estimate of uncollectible accounts 4,000 $ 1,300,000 5,000 4,900 8,400 7,000 3,500 2.400 6.800 4.400 5 1 342.400
4. 5. On the balance sheet, the omission would cause: by assets to be by retained earnings to be IT DE On the income statement, the omission would cause: by expenses to be by net income to be