Question

Trophy Fish Company supplies flies and fiohing gear to sporting goods stores and outtters throughout the western Unted States The accounts receivable cherk for Trophy Fish prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2015 Not Past Due Days Past Due Days Past Due Days Past Due Days Past Due Days Past Due Customer Balance 1-30 31-60 61-90 91-120 Over 120 4AA Outtitters 20.500.00 20,500.00 Brown Trout Fly Shop 7,600.00 600.00 ォ! Zigs Fish Adventures 5.900.00 3.900.00 ,319,300.00 758,200.00 99 000 00 29,300.00 56.900.00 12400.0b The following accounts were unintentionaly omitted from the aging schedule Customer Due Date Balance

Answer 1

1.

Customer	Due Date	Number of Days Past Due
Adams Sports & Flies	May 22, 2015	223	days
Blue Dun Flies	Oct. 10, 2015	82	days
Cicada Fish Co.	Sept. 29, 2015	93	days
Deschutes Sports	Oct. 20, 2015	72	days
Green River Sports	Nov. 7, 2015	54	days
Smith River Co.	Nov. 28, 2015	33	days
Western Trout Company	Dec. 7, 2015	24	days
Wolfe Sports	Jan. 20, 2016	0	days

2.

		Not	Days Past Due
		Past
Customer	Balance	Due	1-30	31-60	61-90	91-120	Over 120
AAA Outfitters	20500.00	20500.00
Brown Trout Fly Shop	7600.00			7600.00
Zigs Fish Adventures	3900.00		3900.00
Subtotals	1319300.00	758200.00	299000.00	129300.00	36900.00	17400.00	78500.00
Adams Sports & Flies	4800.00						4800.00
Blue Dun Flies	4700.00				4700.00
Cicada Fish Co.	8600.00					8600.00
Deschutes Sports	7000.00				7000.00
Green River Sports	3500.00			3500.00
Smith River Co.	2200.00			2200.00
Western Trout Company	6900.00		6900.00
Wolfe Sports	4200.00	4200.00
Totals	1361200.00	762400.00	305900.00	135000.00	48600.00	26000.00	83300.00
Percentage uncollectible		1%	2%	12%	28%	41%	84%
Estimate of doubtful accounts	124182.00	7624.00	6118.00	16200.00	13608.00	10660.00	69972.00

3. Allowance for doubtful accounts: $124182

4.

JOURNAL
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
Dec. 31, 2015	Bad debt expense ($3500 + $124182)		127682
	Allowance for doubtful accounts			127682
	(To record uncollectible accounts expense)

5. On the balance sheet, assets would be overstated by $127682 because the allowance for doubtful accounts would be understated by $127682. In addition, the owner's capital account would be overstated by $127682 because bad debt expense would be understated and net income overstated by $127682 on the income statement.

	Pre-adj.	Post-adj.	Diff.
AR	1361200	1361200	0
Less: Allowance [(Debit)/Credit]	-3500	124182	-127682
Net realizable value $	1364700	1237018	127682