The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31:
1 2 3 4 5 212 Academy Industries Inc. Ascent Company Zoot Company Subtotals 3,000 4,500 5,000 1,050,000 30,000
The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals:
Customer Balance Due Date Conover Industries $30,000 March 22 Keystone Company 18,000 July 1 Moxie Creek Inc. 9,000 July 25 Rainbow Company 26,400 September 10 Swanson Company 46,600 August 3
a. Determine the number of days past due for each of the preceding accounts as of August 31.
b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
Answer:
a.
Customer
Conover Industries
Keystone Company
Moxie Creek Inc.
Rainbow Company
Swanson Company
b.
Not Past Over
Customer Balance Due 1–30 31–60 61–90 90
Academy Industries Inc. 3,000 3,000
Ascent Company 4,500 4,500
Zoot Company 5,0005,000
Subtotals 1,050,000 600,000 220,000 115,000 85,000 30,000
Conover Industries 30,00030,000
Keystone Company 18,00018,000
Moxie Creek Inc. 9,0009,000
Rainbow Company 26,400 26,400
Swanson Company 46,600 46,600
Totals 1,180,000 626,400 266,600 124,000 103,000 60,000