Anglers Dream Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western
Question:
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The following accounts were unintentionally omitted from the aging schedule:
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Angler€™s Dream has a past history of uncollectible accounts by age category, as follows:
Age Class Percent Uncollectible
Not past due .......... 1%
1€“30 days past due ....... 4
31€“60 days past due ........ 8
61€“90 days past due ....... 25
91€“120 days past due ...... 45
Over 120 days past due ...... 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 Angler€™s Dream Company has a debit balance of $1,405 before adjustment on December 31, 2011. Journalize the adjusting entry for uncollectible accounts.
5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and incomestatement?
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Customer Due Date Number of Days Past Due Antelope Sports Flies June 21 2011 193 days 9 31 31 30 3...View the full answer
