Aging of Receivables; Estimating Allowance for Doubtful Accounts 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: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 AAA Outfitters 19,900 19,900 Brown Trout Fly Shop 7,500 7,500 Zigs Fish Adventures Subtotals 4,400 1,284,700 749,100 4,400 282,500 111,800 44,900 20,000 76,400 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Adams Sports and Flies May 22 $4,500 Blue Dun Flies Oct. 10 5,300 Cicada Fish Co. Sept. 29 8,500 Deschutes Sports Oct. 20 7,400 Green River Sports Nov. 7 3,200 Smith River Co. Nov. 28 2,500 Western Trout Company Dec. 7 7,000 Wolfe Sports Jan. 20 4,300 Trophy Fish has a past history of uncollectible accounts by age category, as follows: Age Class Not past due 1-30 days past due Percent Uncollectible 1 % 2 Not past due 1-30 days past due 31-60 days past due 61-90 days past due 1 % 2 9 29 91-120 days past due 38 Over 120 days past due 79 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. Customer Due Date Number of Days Past Due Adams Sports and Flies May 22 days Blue Dun Flies Oct. 10 days Cicada Fish Co. Sept. 29 days Deschutes Sports Oct. 20 days Green River Sports Nov. 7 days Smith River Co. Nov. 28 days Western Trout Company Dec. 7 days Wolfe Sports Jan. 20 days 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. Trophy Fish Company Aging of Receivables Schedule December 31, 2017 Customer Balance AAA Outfitters 19,900 Not Past Due 19,900 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 Brown Trout Fly Shop 7,500 7,500 Zigs Fish Adventures 4400 4400 Subtotals 1,284,700 749,100 282,500 111,800 44,900 20,000 76,400 Adams Sports and Flies Blue Dun Flies Cicada Fish Co. Deschutes Sports Green River Sports Smith River Co. Western Trout Company Wolfe Sports Totals Percent uncollectible (%) Estimate of uncollectible accounts % 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Feedback Check My Work 4. Assume that the allowance for doubtful accounts for Trophy Fish has a credit balance of $3,600 before adjustment on December 31, 2017. Journalize the adjustment for uncollectible accounts. Dec. 31 Feedback ►Check My Work 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? because the allowance for doubtful accounts would be understated because bad debt expense would be understated by $ On the balance sheet, assets would be overstated by $ the stockholders' equity (retained earnings) would be overstated on the income statement. by $ Feedback ►Check My Work Feedback by $ . In addition, and net income overstated ✓