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ageNOWV21 Online teacX + takeAssignment/takeAssignmentMain.do?invokere&takeAssignmentSession.ocator=&inprogress-false Aging or Receivables: Estimating Allowance for Doubtful Accounts Wig Creations Company supplies wigs and hair care products to beauty salons

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ageNOWV21 Online teacX + takeAssignment/takeAssignmentMain.do?invokere&takeAssignmentSession.ocator=&inprogress-false Aging or Receivables: Estimating Allowance for Doubtful Accounts Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2017: Days Past Due Not Past Due Balance 1-30 31-60 61-90 91-120 Over 120 Customer ABC Beauty Angel Wigs 20.900 20,900 7,000 7,000 Zodiac Beauty 4,000 4,000 Subtotals 1,299,900 749,200 280,400 128,300 37,300 20,200 84,500 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nall, which is due in the next year Customer Due Date Balance Arcade Beauty Aug. 17 $4,600 Creative Images Oct. 30 4,800 Excel Hair Products July 3 8,100 First Class Hair Care Sept. 8 6,600 Golden Images Nov. 23 3,900 On That Hair Nov. 29 2,100 One Stop Hair Designs Dec 7 7,000 Visions Hair & Nail Jan. 11 4,600 Wig Creations has a past history of uncollectible accounts by age category, as follows: Submit Test for Grading Wig Creations has a past history of uncollectible accounts by age category, as follows Age Class Percent Uncollectible 1.9 2 10 Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due 28 41 77 Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero Customer Due Date Number of Days Past Due days Aug. 17 Oct. 30 days Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images July 3 days days Sept. Nov. 23 days days ON That Hair Nov. 29 Dec. 7 days One Stop Hair Designs Visions Hair Nail Jan, 11 days 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If an amount box does not requin an entry leave it blank Submit Test for a 2. Complete the aging or receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If an amount box does not require an entry, leave it blank Wig Creations Company Aging of Receivables Schedule December 31, 2017 Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 Balance 7,000 20,900 20,900 7,000 4,000 1,299,900 749,200 4,000 280,400 128,300 37,300 20,200 84,500 Customer ABC Beauty Angel Wigs Zodiac Beauty Subtotals Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nail Totals Percent uncollectible (9) Estimate of uncollectible accounts stimate the allowance for dubtful accounts haced on the intervalec schedule Irn/takeAssignment/takeAssignment Moin.do?invokera&takeAssignmentSessionLocator&inprogress-false Excel Hair Products First Cass Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nail Totals Percent uncollectible (4) Estimate of uncollectible accounts 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $5,000 before adjustment on December 31, 2017. Journalue the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank Dec. 31 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? by On the balance sheet, assets would be by In addition, the stockholders' equity (retained earnings) would be income by s on the income statement because the allowance for doubtful accounts would be by because bad debt expense would be and not

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