Everglades University Intermediate Accounting Aging of receivables Paper

You will complete this problem (9-2A) using the Excel templateabove. This template is designed by the publisher and has a special feature built into it that will tell you when you are wrong by putting a red (*) next to your number that is incorrect. If you review your work and try to fix these, you will have an opportunity to know that it is correct before submitting it because there will be no red (*) on the sheet. [26E = 14E, 27E = 15E]

Problem 9-2A
Name:
Section:
Score:
Key Code:
0%
[Key code here]
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
An asterisk (*) will appear to the right of an incorrect entry.
Enter a zero in cells you would otherwise leave blank.
1.
Customer
Due Date
Adams Sports and Flies
Blue Dun Files
Cicada Fish Co.
Deschutes Sports
Green River Sports
Smith River Co.
Western Trout Company
Wolfe Sports
May 22, 2015
Oct. 10, 2015
Sept. 29, 2015
Oct. 20, 2015
Nov. 7, 2015
Nov. 28, 2015
Dec. 7, 2015
Jan. 20, 2016
Number of Days
Past Due
2., 3.
Aging of Receivables Schedule
December 31, 2015
Days Past Due
Customer
Not Past
Due
Balance
AAA Outfitters
Brown Trout Fly Shop
$
20.000
7.500
Zigs Fish Adventures
Subtotals
Adams Sports and Flies
Blue Dun Files
Cicada Fish Co.
4.000
$ 1.300.000
5.000
4.900
8.400
$
1 – 30
31 – 60
Over
120
91 – 120
20.000
$
$
61 – 90
750.000
4.000
$ 290.000
7.500
$ 120.000
$
40.000
$
20.000
$
80.000
Deschutes Sports
Green River Sports
Smith River Co.
Western Trout Company
Wolfe Sports
Totals
7.000
3.500
2.400
6.800
4.400
$ 1.342.400
Percent uncollectible
Estimate of
uncollectible accounts
4.
5.
On the balance sheet, the omission would cause:
assets to be
by
owner’s capital to be
by
On the income statement, the omission would cause:
expenses to be
by
net income to be
by
V 3. $121,000
PR 9-2A Aging of receivables; estimating allowance for doubtful accounts
OBJ. 4
Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfit-
ters 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:
B
D
E
H Н.
C
Not
Past
F 1G
Days Past Due
A
1
2
3 Customer
4 AAA Outfitters
5 Brown Trout Fly Shop
Due
1-30
31-60
61-90
91-120 Over 120
Balance
20,000
7,500
20,000
7,500
30 Zigs Fish Adventures
31 Subtotals
4,000
4,000
1,300,000 750,000 290,000 120,000
40,000 20,000
80,000
(Continued)
450
Chapter 9 Receivables
The following accounts were unintentionally omitted from the aging schedule:
Customer
Adams Sports & Flies
Blue Dun Flies
Cicada Fish Co.
Deschutes Sports
Green River Sports
Smith River Co.
Western Trout Company
Wolfe Sports
Due Date
May 22, 2015
Oct. 10, 2015
Sept. 29, 2015
Oct. 20, 2015
Nov. 7, 2015
Nov. 28, 2015
Dec. 7, 2015
Jan. 20, 2016
Balance
$5,000
4,900
8,400
7,000
3,500
2,400
6,800
4,400
Trophy Fish has a past history of uncollectible accounts by age category, as follows:
Age Class
Not past due
1-30 days past due
31-60 days past due
61-90 days past due
91-120 days past due
Over 120 days past due
Percent Uncollectible
1%
2
10
30
40
80
Instructions
1. Determine the number of days past due for each of the preceding accounts.
2. Complete the aging of receivables schedule by adding the omitted accounts to the
bottom of the schedule and updating the totals.
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, 2015. Journalize the adjusting
entry for uncollectible accounts.
5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omis-
sion affect the balance sheet and income statement?