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 20,100.00 20,100.00 5 Brown Trout Fly Shop 7,300.00 7,300.00 6 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 7 8 Zigs Fish Adventures 4,200.00 4,200.00 9 Subtotals 1,328,100.00 759,100.00 299,900.00 125,700.00 44,600.00 19,100.00 79,700.00 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 $4,500 Blue Dun Flies Oct. 10, 20Y6 5,400 Cicada Fish Co. Sept. 29, 20Y6 7,900 Deschutes Sports Oct. 20, 20Y6 6,500 Green River Sports Nov. 7, 20Y6 3,000 Smith River Co. Nov. 28, 20Y6 2,200 Western Trout Company Dec. 7, 20Y6 6,700 Wolfe Sports Jan. 20, 20Y7 4,200 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 11 61–90 days past due 29 91–120 days past due 38 Over 120 days past due 84 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 $3,200 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?

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 20,100.00 20,100.00 5 Brown Trout Fly Shop 7,300.00 7,300.00 6 ~~~ ~ ~ ~ ~ ~ ~ ~~~ 7 8 Zigs Fish Adventures 4,200.00 4,200.00 9 Subtotals 1,328,100.00 759,100.00 299,900.00 125,700.00 44,600.00 19,100.00 79,700.00 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports & Flies May 22, 20Y6 $4,500 Blue Dun Flies Oct. 10, 20Y6 5,400 Cicada Fish Co. Sept. 29, 20Y6 7,900 Deschutes Sports Oct. 20, 20Y6 6,500 Green River Sports Nov. 7, 20Y6 3,000 Smith River Co. Nov. 28, 20Y6 2,200 Western Trout Company Dec. 7, 20Y6 6,700 Wolfe Sports Jan. 20, 20Y7 4,200 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 11 61–90 days past due 29 91–120 days past due 38 Over 120 days past due 84 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 $3,200 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?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter8: Receivables

Section: Chapter Questions

Problem 2PA: Aging of receivables; estimating allowance for doubtful accounts Trophy Fish Company supplies flies...

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	20,100.00	20,100.00
5	Brown Trout Fly Shop	7,300.00			7,300.00
6	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
7
8	Zigs Fish Adventures	4,200.00		4,200.00
9	Subtotals	1,328,100.00	759,100.00	299,900.00	125,700.00	44,600.00	19,100.00	79,700.00

The following accounts were unintentionally omitted from the aging schedule:

Customer	Due Date	Balance
Adams Sports & Flies	May 22, 20Y6	$4,500
Blue Dun Flies	Oct. 10, 20Y6	5,400
Cicada Fish Co.	Sept. 29, 20Y6	7,900
Deschutes Sports	Oct. 20, 20Y6	6,500
Green River Sports	Nov. 7, 20Y6	3,000
Smith River Co.	Nov. 28, 20Y6	2,200
Western Trout Company	Dec. 7, 20Y6	6,700
Wolfe Sports	Jan. 20, 20Y7	4,200

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	11
61–90 days past due	29
91–120 days past due	38
Over 120 days past due	84

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 $3,200 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?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 6 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.