Trophy Fish Company supplies flies and fishing gear to sporting goods stores and
ID: 2498304 • Letter: T
Question
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, 2015:
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:
Trophy Fish has a past history of uncollectible accounts by age category, as follows:
Chart of Accounts
Starting Question
1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero.
Aging of Receivables Schedule
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.
Aging of Receivables Schedule
December 31, 2015
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
20,100.00
20,100.00
4
Brown Trout Fly Shop
7,300.00
7,300.00
5
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
6
Zigs Fish Adventures
4,200.00
4,200.00
7
Subtotals
1,328,100.00
759,100.00
299,900.00
125,700.00
44,600.00
19,100.00
79,700.00
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
Additional Question
3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.
$ ??
Journal
4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of $3,200 before adjustment on December 31, 2015. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for a listing of the account titles the company uses.
PAGE 10
JOURNAL
1
2
Final Question Tab
5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?
On the balance sheet, assets would be by because the allowance for doubtful accounts would be by . In addition, the owner’s capital account would be by because bad debt expense would be and net income by on the income statement. 128,603 or 131,203 or 131,803
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
Explanation / Answer
1. Determination of the number of days past due for each of the preceding accounts:
2. Aging of receivables schedule
3. Allowance for doubtful accounts = $128608
4. Journal
Customer Due Date No. of Days Past due Adams Sports & Flies May 22, 2015 223 Blue Dun Flies Oct 10, 2015 82 Cicada Fish Co. Sep 29, 2015 93 Deschutes Sports Oct 20, 2015 72 Green River Sports Nov 7, 2015 54 Smith River Co. Nov 28, 2015 33 Western Trout Company Dec 7, 2015 24 Wolfe Sports Jan 20, 2016 -Related Questions
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