In: Accounting
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 |
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2 |
Past |
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3 |
Customer |
Balance |
Due |
1-30 |
31-60 |
61-90 |
91-120 |
Over 120 |
4 |
AAA Outfitters |
20,600.00 |
20,600.00 |
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5 |
Brown Trout Fly Shop |
7,200.00 |
7,200.00 |
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6 |
~~~~~ |
~~~~~ |
~~~~~ |
~~~~~ |
~~~~~ |
~~~~~ |
~~~~~ |
~~~~~ |
7 |
||||||||
8 |
Zigs Fish Adventures |
4,200.00 |
4,200.00 |
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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 |
3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.