omplete the aging-of-receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If an amount box does not require an entry, leave it blank. Kirchhoff
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
| Not | Days Past Due | |||||||||||
| Past | Over | |||||||||||
| Customer | Balance | Due | 1-30 | 31-60 | 61-90 | 90 | ||||||
| Academy Industries Inc. | 5,500 | 5,500 | ||||||||||
| Ascent Company | 4,500 | 4,500 | ||||||||||
| Zoot Company | 9,800 | 9,800 | ||||||||||
| Subtotals | 784,200 | 473,700 | 172,500 | 75,300 | 39,200 | 23,500 |
The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above:
| Customer | Balance | Due Date | |
| Conover Industries | $11,000 | July 9 | |
| Keystone Company | 7,800 | September 20 | |
| Moxie Creek Inc. | 15,700 | October 16 | |
| Rainbow Company | 9,400 | November 5 | |
| Swanson Company | 21,200 | December 21 |
b. Complete the aging-of-receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If an amount box does not require an entry, leave it blank.
| Kirchhoff Industries | ||||||
| Aging of Receivables Schedule | ||||||
| November 30 | ||||||
| Customer | Balance | Not Past Due | Days Past Due 1-30 | Days Past Due 31-60 | Days Past Due 61-90 | Days Past Due Over 90 |
| Academy Industries Inc. | 5,500 | 5,500 | fill in the blank 53a73f0ddf83ffa_1 | fill in the blank 53a73f0ddf83ffa_2 | fill in the blank 53a73f0ddf83ffa_3 | fill in the blank 53a73f0ddf83ffa_4 |
| Ascent Company | 4,500 | fill in the blank 53a73f0ddf83ffa_5 | 4,500 | fill in the blank 53a73f0ddf83ffa_6 | fill in the blank 53a73f0ddf83ffa_7 | fill in the blank 53a73f0ddf83ffa_8 |
| Zoot Company | 9,800 | fill in the blank 53a73f0ddf83ffa_9 | fill in the blank 53a73f0ddf83ffa_10 | 9,800 | fill in the blank 53a73f0ddf83ffa_11 | fill in the blank 53a73f0ddf83ffa_12 |
| Subtotals | 784,200 | 473,700 | 172,500 | 75,300 | 39,200 | 23,500 |
| Conover Industries | fill in the blank 53a73f0ddf83ffa_13 | fill in the blank 53a73f0ddf83ffa_14 | fill in the blank 53a73f0ddf83ffa_15 | fill in the blank 53a73f0ddf83ffa_16 | fill in the blank 53a73f0ddf83ffa_17 | fill in the blank 53a73f0ddf83ffa_18 |
| Keystone Company | fill in the blank 53a73f0ddf83ffa_19 | fill in the blank 53a73f0ddf83ffa_20 | fill in the blank 53a73f0ddf83ffa_21 | fill in the blank 53a73f0ddf83ffa_22 | fill in the blank 53a73f0ddf83ffa_23 | fill in the blank 53a73f0ddf83ffa_24 |
| Moxie Creek Inc. | fill in the blank 53a73f0ddf83ffa_25 | fill in the blank 53a73f0ddf83ffa_26 | fill in the blank 53a73f0ddf83ffa_27 | fill in the blank 53a73f0ddf83ffa_28 | fill in the blank 53a73f0ddf83ffa_29 | fill in the blank 53a73f0ddf83ffa_30 |
| Rainbow Company | fill in the blank 53a73f0ddf83ffa_31 | fill in the blank 53a73f0ddf83ffa_32 | fill in the blank 53a73f0ddf83ffa_33 | fill in the blank 53a73f0ddf83ffa_34 | fill in the blank 53a73f0ddf83ffa_35 | fill in the blank 53a73f0ddf83ffa_36 |
| Swanson Company | fill in the blank 53a73f0ddf83ffa_37 | fill in the blank 53a73f0ddf83ffa_38 | fill in the blank 53a73f0ddf83ffa_39 | fill in the blank 53a73f0ddf83ffa_40 | fill in the blank 53a73f0ddf83ffa_41 | fill in the blank 53a73f0ddf83ffa_42 |
| Totals | fill in the blank 53a73f0ddf83ffa_43 | fill in the blank 53a73f0ddf83ffa_44 | fill in the blank 53a73f0ddf83ffa_45 | fill in the blank 53a73f0ddf83ffa_46 | fill in the blank 53a73f0ddf83ffa_47 | fill in the blank 53a73f0ddf83ffa_48 |
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