Aging of Receivables; Estimating Allowance for Doubtful Accounts Required: 1. De
ID: 2424514 • Letter: A
Question
Aging of Receivables; Estimating Allowance for Doubtful Accounts
Required:
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 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.
Trophy Fish Company
Aging of Receivables Schedule
December 31, 2013
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
20,000
20,000
Brown Trout Fly Shop
7,500
7,500
Zigs Fish Adventures
4,000
4,000
Subtotals
Adams Sports and Flies
Blue Dun Flies
Cicada Fish Co.
Deschutes Sports
Green River Sports
Smith River Co.
Western Trout Company
Wolfe Sports
Totals
Percentage uncollectible (%)
1 %
2 %
10 %
30 %
40 %
80 %
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, 2013. Journalize the adjusting entry for uncollectible accounts.
Correct 2 of Item 4
Correct 3 of Item 4
Correct 4 of Item 4
Correct 5 of Item 4
Customer Due Date Number of Days Past Due Adams Sports & Flies May 22, 2013 days Blue Dun Flies Oct. 10, 2013 days Cicada Fish Co. Sept. 29, 2013 days Deschutes Sports Oct. 20, 2013 days Green River Sports Nov. 7, 2013 days Smith River Co. Nov. 28, 2013 days Western Trout Company Dec. 7, 2013 days Wolfe Sports Jan. 20, 2014 dayExplanation / Answer
1) Days past due date
2) Aging Table
3) Allowance for Doubtfull Account = $ 121,000
4) Journal Entry
Bad debt Expense Dr 124,600
Allowance for Doubtfull Debts Cr 124,600
Note : Allowance for doubtfull debts = 121,000 + 3,600 = 124,600
Customer Due date No. of days past due date Adams Sports & Flies May 22, 2013 223 Days Blue Dun Flies Oct. 10, 2013 82 Days Cicada Fish Co. Sept. 29, 2013 93 Days Deschutes Sports Oct. 20, 2013 72 Days Green River Sports Nov. 7, 2013 54 Days Smith River Co. Nov. 28, 2013 33 Days Western Trout Company Dec. 7, 2013 24 Days Wolfe Sports Jan. 20, 2014 0