Question

Trophy Fish Company supplies flies and fishing gear 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, 20Y6:

1			Not	Days Past Due	Days Past Due	Days Past Due	Days Past Due	Days Past Due
2			Past
3	Customer	Balance	Due	1-30	31-60	61-90	91-120	Over 120
4	AAA Outfitters	20,600.00	20,600.00
5	Brown Trout Fly Shop	7,200.00			7,200.00
6	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~	~~~~~
7
8	Zigs Fish Adventures	4,200.00		4,200.00
9	Subtotals	1,301,200.00	751,700.00	287,100.00	126,100.00	37,800.00	23,500.00	75,000.00

The following accounts were unintentionally omitted from the aging schedule:

Customer	Due Date	Balance
Adams Sports & Flies	May 22, 20Y6	$4,900
Blue Dun Flies	Oct. 10, 20Y6	5,200
Cicada Fish Co.	Sept. 29, 20Y6	8,300
Deschutes Sports	Oct. 20, 20Y6	6,800
Green River Sports	Nov. 7, 20Y6	3,800
Smith River Co.	Nov. 28, 20Y6	2,900
Western Trout Company	Dec. 7, 20Y6	7,000
Wolfe Sports	Jan. 20, 20Y7	4,400

Trophy Fish 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	2
31–60 days past due	8
61–90 days past due	30
91–120 days past due	39
Over 120 days past due	80

4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of $4,000 before adjustment on December 31, 20Y6. Journalize the adjusting entry for uncollectible accounts. Refer to the chart of accounts for a listing of the account titles the company uses.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Answer 1