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Number of Days Past Due Determine the number of days each account is past due as

ID: 2460127 • Letter: N

Question

Number of Days Past Due

Determine the number of days each account is past due as of October 31.

The accounts receivable clerk for Quigley Industries prepared the following partially completed aging of receivables schedule as of the end of business on November 30:

The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above:

a. Determine the number of days past due for each of the preceding accounts as of November 30. If an account is not past due, enter 0.


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Solution


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.

Quigley 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

Able Brothers Inc.

$ 4,300

$ 4,300

Correct 14 of Item 2

Correct 15 of Item 2

Correct 16 of Item 2

Correct 17 of Item 2

Accent Company

4,900

Correct 20 of Item 2

4,900

Correct 22 of Item 2

Correct 23 of Item 2

Correct 24 of Item 2

Zumpano Company

8,300

Correct 27 of Item 2

Correct 28 of Item 2

8,300

Correct 30 of Item 2

Correct 31 of Item 2

Subtotals

856,900

517,600

188,500

82,300

42,800

25,700

Beltran Industries

Correct 40 of Item 2

Correct 41 of Item 2

Correct 42 of Item 2

Correct 43 of Item 2

Correct 44 of Item 2

Correct 45 of Item 2

Doodle Company

Correct 47 of Item 2

Correct 48 of Item 2

Correct 49 of Item 2

Correct 50 of Item 2

Correct 51 of Item 2

Correct 52 of Item 2

La Corp Inc.

Correct 54 of Item 2

Correct 55 of Item 2

Correct 56 of Item 2

Correct 57 of Item 2

Correct 58 of Item 2

Correct 59 of Item 2

VIP Sales Company

Correct 61 of Item 2

Correct 62 of Item 2

Correct 63 of Item 2

Correct 64 of Item 2

Correct 65 of Item 2

Correct 66 of Item 2

We-Go Company

Correct 68 of Item 2

Correct 69 of Item 2

Correct 70 of Item 2

Correct 71 of Item 2

Correct 72 of Item 2

Correct 73 of Item 2

Totals

Correct 75 of Item 2

Correct 76 of Item 2

Correct 77 of Item 2

Correct 78 of Item 2

Correct 79 of Item 2

$

Estimating Allowance for Doubtful Accounts

Quigley Industries has a past history of uncollectible accounts, as shown below.


Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below.

Quigley Industries

Aging-of-Receivables Schedule

Customer

Balance

Not Past Due

1-30 Days Past Due

31-60 Days Past Due

61-90 Days Past Due

Over 90 Days Past Due

Subtotals

814,100

480,300

179,100

73,300

40,700

40,700

Beltran Industries

18,700

18,700

Doodle Company

15,100

15,100

La Corp Inc.

7,500

7,500

VIP Sales Company

7,500

7,500

We-Go Company

23,300

23,300

Totals

886,200

503,600

186,600

80,800

55,800

59,400

Percentage uncollectible

1%

6%

25%

35%

50%

Allowance for Doubtful Accounts

Correct 47

Correct 48

Correct 49

Correct 50

Correct 51

Account Due Date Number of Days Past Due Avalanche Auto August 8 Bales Auto October 11 Derby Auto Repair June 23 Lucky's Auto Repair September 2 Pit Stop Auto September 19 Reliable Auto Repair July 15 Trident Auto August 24 Valley Repair & Tow May 17

Explanation / Answer

number of days past due for each of the preceding accounts as of November 30

Aging analysis

Number of days each account is past due as of October 31 Account Due Date Number of Days Past Due Avalanche Auto 8-Aug-15                      84 Bales Auto 11-Oct-15                      20 Derby Auto Repair 23-Jun-15                     130 Lucky's Auto Repair 2-Sep-15                      59 Pit Stop Auto 19-Sep-15                      42 Reliable Auto Repair 15-Jul-15                     108 Trident Auto 24-Aug-15                      68 Valley Repair & Tow 17-May-15                     167