Cutthroat Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Cutthroat prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2009:

The following accounts were unintentionally omitted from the aging schedule:

Cutthroat Company has a past history of uncollectible accounts by age category, as follows:

Age Class                             Percent Uncollectible

Not past due                                        2%

1–30 days past due                             5

31–60 days past due                           10

61–90 days past due                           25

91–120 days past due                         45

Over 120 days past due                      90

Instructions
2. Complete the aging of receivables schedule.
3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.
4. Assume that the allowance for doubtful accounts for Cutthroat Company has a debit balance of $1,370 before adjustment on December 31, 2009. Journalize the adjusting entry for uncollectibleaccounts.

Transcribed Image Text:

CD E F G Days Past Due A. H. Not Past 91-120 Over 1 20 Due Balance 15,000 15,000 31-60 Customer 1-30 61-90 4 Alder Fishery 5 Brown Trout 5,500 5,500 30 Zug Bug Sports 31 Subtotals 2,900 2,900 850,000 422,450 247,250 103,850 33,300 18,150 25,000