Question
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.
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 receivables schedule as of the end of business on December 31, 20Y1: Days Past Due Customer Balance Not Past Due 1-30 31-60 61-90 91-120 over 120 Subtotals 622,500 345,500 149,400 68,500 23,000 20,500 15,600 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 20Y1 $2,800 Creative Images Sept. 7, 20Y1 5,800 Excel Hair Products Oct. 17, 20Y1 800 First Class Hair Care Oct. 24, 20Y1 1,900 Golden Images Nov. 23, 20Y1 600 Oh The Hair Nov. 29, 20Y1 3,300 One Stop Hair Designs Dec. 2, 20Y1 2,100 Visions Hair and Nail Jan. 5, 20Y2 7,100 Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 2 % 1-30 days past due 4 31-60 days past due 12 61-90 days past due 18 91-120 days past due 40 Over 120 days past due 85 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.
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