Aging of 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 receivabl schedule as of the end of business on December 31, 2017: Days Past Due Not Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 ABC Beauty 19,700 19,700 Angel Wigs 7,300 7,300 Zodiac Beauty Subtotals 4,100 1,304,400 748,400 4,100 297,700 116,500 43,700 20,200 77,900 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nail, 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 7,400 Golden Images Nov. 23 3,300 Oh That Hair Nov. 29 1,900 One Stop Hair Designs Dec. 7 7,100 Visions Hair & Nail Jan. 11 4,000 Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Not past due Percent Uncollectible 1 % 1-30 days past due 3 31-60 days past due 10 61-90 days past due 30 91-120 days past due 41 Over 120 days past due 84 Required: Due Date Aug. 17 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 Arcade Beauty Number of Days Past Due days Creative Images Oct. 30 days Excel Hair Products July 3 days First Class Hair Care Sept. 8 days Golden Images Nov. 23 days Oh That Hair Nov. 29 days One Stop Hair Designs Dec. 7 days 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 require an entry, leave it blank. Wig Creations Company Aging of Receivables Schedule December 31, 20Y7 Balance 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 Customer ABC Beauty 19,700 19,700 Angel Wigs 7,300 7,300 Zodiac Beauty 4,100 4,100 Subtotals 1,304,400 748,400 297,700 116,500 43,700 20,200 77,900 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 (%) % % 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, 20Y7. Journalize 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? On the balance sheet, assets would be earnings) would be by $ by $ because the allowance for doubtful accounts would be because bad debt expense would be and net income by $ by $ In addition, the stockholders' equity (retained on the income statement.