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, 20Y4: 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 20,000.00 20,000.00 5 Brown Trout Fly Shop 7,500.00 7,500.00 6 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 7 8 Zigs Fish Adventures 4,000.00 4,000.00 9 Subtotals 1,300,000.00 750,000.00 290,000.00 120,000.00 40,000.00 20,000.00 80,000.00 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 Adams Sports & Flies May 22 $5,000 Blue Dun Flies Oct. 10 4,900 Cicada Fish Co. Sept. 29 8,400 Deschutes Sports Oct. 20 7,000 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2,400 Western Trout Company Dec. 7 6,800 Wolfe Sports Jan. 20 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 2 31–60 days past due 10 61–90 days past due 30 91–120 days past due 40 Over 120 days past due 80 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 $3,600 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. Refer to the Chart of Accounts for exact wording of account titles. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? CHART OF ACCOUNTS Trophy Fish Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Adams Sports & Flies 122 Accounts Receivable-Blue Dun Flies 123 Accounts Receivable-Cicada Fish Co. 124 Accounts Receivable-Deschutes Sports 125 Accounts Receivable-Green River Sports 126 Accounts Receivable-Smith River Co. 127 Accounts Receivable-Western Trout Company 128 Accounts Receivable-Wolfe Sports 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue 1. Determine the number of days past due for each of the accounts below. If an account is not past due, enter a zero. Customer Due Date Number of Days Past Due Adams Sports & Flies May 22, 20Y4 days Blue Dun Flies Oct. 10, 20Y4 days Cicada Fish Co. Sept. 29, 20Y4 days Deschutes Sports Oct. 20, 20Y4 days Green River Sports Nov. 7, 20Y4 days Smith River Co. Nov. 28, 20Y4 days Western Trout Company Dec. 7, 20Y4 days Wolfe Sports Jan. 20, 20Y5 days 2. 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. Question not attempted. Score: 0/172 Aging of Receivables Schedule December 31, 20Y4 1 Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Customer Balance Not Past Due 1-30 31-60 61-90 91-120 Over 120 3 AAA Outfitters 20,000.00 20,000.00 4 Brown Trout Fly Shop 7,500.00 7,500.00 5 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 6 Zigs Fish Adventures 4,000.00 4,000.00 7 Subtotals 1,300,000.00 750,000.00 290,000.00 120,000.00 40,000.00 20,000.00 80,000.00 8 Adams Sports & Flies 9 Blue Dun Flies 10 Cicada Fish Co. 11 Deschutes Sports 12 Green River Sports 13 Smith River Co. 14 Western Trout Company 15 Wolfe Sports 16 Totals 17 Percentage uncollectible 18 Estimate of uncollectible accounts 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. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 JOURNAL ACCOUNTING EQUATION Score: 0/25 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2
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, 20Y4: 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 20,000.00 20,000.00 5 Brown Trout Fly Shop 7,500.00 7,500.00 6 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 7 8 Zigs Fish Adventures 4,000.00 4,000.00 9 Subtotals 1,300,000.00 750,000.00 290,000.00 120,000.00 40,000.00 20,000.00 80,000.00 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 Adams Sports & Flies May 22 $5,000 Blue Dun Flies Oct. 10 4,900 Cicada Fish Co. Sept. 29 8,400 Deschutes Sports Oct. 20 7,000 Green River Sports Nov. 7 3,500 Smith River Co. Nov. 28 2,400 Western Trout Company Dec. 7 6,800 Wolfe Sports Jan. 20 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 2 31–60 days past due 10 61–90 days past due 30 91–120 days past due 40 Over 120 days past due 80 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 $3,600 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. Refer to the Chart of Accounts for exact wording of account titles. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? CHART OF ACCOUNTS Trophy Fish Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Adams Sports & Flies 122 Accounts Receivable-Blue Dun Flies 123 Accounts Receivable-Cicada Fish Co. 124 Accounts Receivable-Deschutes Sports 125 Accounts Receivable-Green River Sports 126 Accounts Receivable-Smith River Co. 127 Accounts Receivable-Western Trout Company 128 Accounts Receivable-Wolfe Sports 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue 1. Determine the number of days past due for each of the accounts below. If an account is not past due, enter a zero. Customer Due Date Number of Days Past Due Adams Sports & Flies May 22, 20Y4 days Blue Dun Flies Oct. 10, 20Y4 days Cicada Fish Co. Sept. 29, 20Y4 days Deschutes Sports Oct. 20, 20Y4 days Green River Sports Nov. 7, 20Y4 days Smith River Co. Nov. 28, 20Y4 days Western Trout Company Dec. 7, 20Y4 days Wolfe Sports Jan. 20, 20Y5 days 2. 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. Question not attempted. Score: 0/172 Aging of Receivables Schedule December 31, 20Y4 1 Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due 2 Customer Balance Not Past Due 1-30 31-60 61-90 91-120 Over 120 3 AAA Outfitters 20,000.00 20,000.00 4 Brown Trout Fly Shop 7,500.00 7,500.00 5 ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ 6 Zigs Fish Adventures 4,000.00 4,000.00 7 Subtotals 1,300,000.00 750,000.00 290,000.00 120,000.00 40,000.00 20,000.00 80,000.00 8 Adams Sports & Flies 9 Blue Dun Flies 10 Cicada Fish Co. 11 Deschutes Sports 12 Green River Sports 13 Smith River Co. 14 Western Trout Company 15 Wolfe Sports 16 Totals 17 Percentage uncollectible 18 Estimate of uncollectible accounts 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. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 JOURNAL ACCOUNTING EQUATION Score: 0/25 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2
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...
Related questions
Concept explainers
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.
Question
100%
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, 20Y4:
|
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
|
20,000.00
|
20,000.00
|
|
|
|
|
|
|
5
|
Brown Trout Fly Shop
|
7,500.00
|
|
|
7,500.00
|
|
|
|
|
6
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
|
7
|
|
|
|
|
|
|
|
|
|
8
|
Zigs Fish Adventures
|
4,000.00
|
|
4,000.00
|
|
|
|
|
|
9
|
Subtotals
|
1,300,000.00
|
750,000.00
|
290,000.00
|
120,000.00
|
40,000.00
|
20,000.00
|
80,000.00
|
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
|
| Adams Sports & Flies | May 22 | $5,000 |
| Blue Dun Flies | Oct. 10 | 4,900 |
| Cicada Fish Co. | Sept. 29 | 8,400 |
| Deschutes Sports | Oct. 20 | 7,000 |
| Green River Sports | Nov. 7 | 3,500 |
| Smith River Co. | Nov. 28 | 2,400 |
| Western Trout Company | Dec. 7 | 6,800 |
| Wolfe Sports | Jan. 20 | 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 | 2 |
| 31–60 days past due | 10 |
| 61–90 days past due | 30 |
| 91–120 days past due | 40 |
| Over 120 days past due | 80 |
| 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 $3,600 before adjustment on December 31. Journalize the |
| 5. | Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? |
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trophy Fish Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
1. Determine the number of days past due for each of the accounts below. If an account is not past due, enter a zero.
| Customer | Due Date | Number of Days Past Due |
| Adams Sports & Flies | May 22, 20Y4 |
|
| Blue Dun Flies | Oct. 10, 20Y4 |
|
| Cicada Fish Co. | Sept. 29, 20Y4 |
|
| Deschutes Sports | Oct. 20, 20Y4 |
|
| Green River Sports | Nov. 7, 20Y4 |
|
| Smith River Co. | Nov. 28, 20Y4 |
|
| Western Trout Company | Dec. 7, 20Y4 |
|
| Wolfe Sports | Jan. 20, 20Y5 |
|
2. 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.
Question not attempted.
Score: 0/172
|
Aging of Receivables Schedule
|
|
December 31, 20Y4
|
|
1
|
|
|
|
Days Past Due
|
Days Past Due
|
Days Past Due
|
Days Past Due
|
Days Past Due
|
|
2
|
Customer
|
Balance
|
Not Past Due
|
1-30
|
31-60
|
61-90
|
91-120
|
Over 120
|
|
3
|
AAA Outfitters
|
20,000.00
|
20,000.00
|
|
|
|
|
|
|
4
|
Brown Trout Fly Shop
|
7,500.00
|
|
|
7,500.00
|
|
|
|
|
5
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
~~~~~
|
|
6
|
Zigs Fish Adventures
|
4,000.00
|
|
4,000.00
|
|
|
|
|
|
7
|
Subtotals
|
1,300,000.00
|
750,000.00
|
290,000.00
|
120,000.00
|
40,000.00
|
20,000.00
|
80,000.00
|
|
8
|
Adams Sports & Flies
|
|
|
|
|
|
|
|
|
9
|
Blue Dun Flies
|
|
|
|
|
|
|
|
|
10
|
Cicada Fish Co.
|
|
|
|
|
|
|
|
|
11
|
Deschutes Sports
|
|
|
|
|
|
|
|
|
12
|
Green River Sports
|
|
|
|
|
|
|
|
|
13
|
Smith River Co.
|
|
|
|
|
|
|
|
|
14
|
Western Trout Company
|
|
|
|
|
|
|
|
|
15
|
Wolfe Sports
|
|
|
|
|
|
|
|
|
16
|
Totals
|
|
|
|
|
|
|
|
|
17
|
Percentage uncollectible
|
|
|
|
|
|
|
|
|
18
|
Estimate of uncollectible accounts
|
|
|
|
|
|
|
|
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. Refer to the Chart of Accounts for exact wording of account titles.
Question not attempted.
PAGE 10
JOURNAL
Score: 0/25
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 15 images
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.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College