Question Details

PR9-2A.
Steelhead Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Steelhead prepared the following partially completed aging-of-receivables schedule as of the end of business on December 31, 2007:


	A
	B
	C
	D            E      |      F             G      |      H      |


	
	
	Not
	Days Past Due


	Customer
	Balance
	Past Due
	1-30       31-60  T  61-90 T 91-1^20 lover 120 :

1
	Alexandra Fishery
	15,000
	15,000
	i           !           i          I      . ...LI

2
	Cutthroat Sports
	5,500
	
	!      5,500 \                \               I                 I   2

^O-
	"~ -.........„.-••••""••"•••--............• "'~~"" -
~~   ~..............    •:-•••""•"'    ................       '"••-•
	
	
	I                     l                     :                    ;                      i    ^

30
	Yellowstone Sports
	2,900
	
	2,900                   j                 |                [                   30

31
	Subtotals
	880,000
	448,600
	247,250      98,750:     33,300 j   29,950 |     22,150:31

The following accounts were unintentionally omitted from the aging schedule.
Customer	Due Date               Balance
                                         Baitfish Sports & Flies                June 21, 2007	$1,750
                                         Kiwi Flies                                     Sept. 9, 2007	      650
                                         Adams Co.                                   Sept. 30, 2007	   1,500	
                                         Bailey Sports	      Oct. 17, 2007	      600
                                         Prince Sports	       Nov. 18, 2007	      950
                                         Cahill Co.	      Nov. 28, 2007	    2,000
                                         Wintson Company	      Dec. 1, 2007	    2,250
                                         Goofus Bug Sports	      Jan. 6, 2008	    6,200
Steelhead Company has a past history of uncollectible accounts by age category, as follows:
Percent
Age Class	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
1. Determine the number of days past due for each of the preceding accounts.
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 Steelhead Company has a debit bal¬ance of $3,199 before adjustment on December 31, 2007. Journalize the adjusting entry for uncollectible accounts.