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v2.cengagenow.com CengageNOWv2 Online teaching and learning resource from Cengage L.. Cengage Learning Aging Of Receivables; Estimating Allowance For Dou... I Chegg.com+ Chapter 8 Homework eBook Calculator Aging of Receivables; Estimating Allowance for Doubtful Accounts 2. Trophy Fish Company supplies flies and fishing gear products 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, 20Y7: 3. Not Past Due 20,600 Days Past Due 5. 1-30 31-60 61-90 91-120 ver 1 Customer AAA Outfitters Brown Trout Fly Shop Balance 6. 20,600 7,100 7,100 8. ) zigs Fish Adventures 4,300 4,300 Subtotals The following accounts were unintentionally omitted from the aging schedule: Customer Adams Sports and Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co 1,288,300 743,500 290,100 114,70039,900 19,100 700 39,90019,10081.00 9. Due Date 3-1 Balance May 22 Oct. 10 Sept. 29 Oct. 20 Nov.7 Nov. 28 $5,400 5,200 8,500 7,100 2,200 Check My Work 3 more Check My Work uses remaining. Previous Progress: 14/14 items Assignment Score: 55% All work saved Email Instructor Save and Exit Submit Assignment for Grading

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Answer 1. Customer Due Date No. of Days Past Due Adams Sports File 22-May 223 days Blue Dun Flies 10-Oct 82 days Cicada Fish Co. 29-Sep 93 days Deshutes Sports 20-Oct 72 days Green River sports 7-Nov 54 days Smith River Co. 28-Nov 33 days Western trout Company 7-Dec 24 days Wolfe Sports 20-Jan 345 days Answer 2. Trophy Fish Company Aging of Receivable Schedule Dec. 31, 20Y7 Customer Balance Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 AAA Outfitters                20,600           20,600 Brown Trout Fly Shop                  7,100              7,100 Zig Fish Adventures                  4,300              4,300 Sub-totals          1,288,300         743,500          290,100          114,700          39,900          19,100             81,000 Adams Sports File                  5,400                5,400 Blue Dun Flies                  5,200            5,200 Cicada Fish Co.                  8,500            8,500 Deshutes Sports                  7,100            7,100 Green River sports                  4,000              4,000 Smith River Co.                  2,200              2,200 Western trout Company                  6,800              6,800 Wolfe Sports                  4,900                4,900 Totals          1,332,400         743,500          296,900          120,900          52,200          27,600             91,300 Percent Uncollectible (%) 1% 3% 9% 30% 42% 85% Estimate of Uncollectible Accounts              132,080              7,435              8,907            10,881          15,660          11,592             77,605 Answer 3. Allowance for Doubtful Accounts              132,080 Answer 4. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 31-Dec Bad Debt Expenses                                Dr.          127,580 $132,080 - $4500    To Allowance for Doubtful Accounts          127,580 (Record the bad debt expenses) Answer 5. On the Balance Sheet, assets would be overstated by $127,580 because the allowance for doubtful accounts would be understated by $127,580. In Addition, the stockholders' equity (retained earnings) would be overstated by $127,580 because bad debt expenses would be $127,580 and Net Income overstated by $127,580 on the income statement.

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