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, 20Y7: Customer Balance Not Past Due Days Past Due 1-30 Days Past Days Past Due 31-60 Due 61-90 Days Past Due 91-120 Days Past Due Over 120 ABC Beauty Angel Wigs 20,700 7,500 20,700 Zodiac Beauty Subtotals 3,800 1,270,300 740,500 7,500 3,800 281,200 110,000 43,600 19,200 75,800 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 Arcade Beauty Creative Images Due Date Balance August 17 $5,200 October 30 4,800 Excel Hair Products July 3 8,900 First Class Hair Care September 8 6,600 Golden Images November 23 3,700 Oh That Hair November 29 2,700 One Stop Hair Designs December 7 7,100 Visions Hair & Nail January 11 4,300 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 31 91-120 days past due 40 Over 120 days past due Required: 79 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 Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images August 17 days October 30 days July 3 days September 8 days November 23 days Oh That Hair November 29 days One Stop Hair Designs December 7 days Visions Hair & Nail January 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, 2017 Balance Not Past Due Days Past Due 1-30 Days Past Days Past Due 31-60 Due 61-90 Days Past Due 91-120 Days Past Due Over 120 Customer ABC Beauty 20,700 20,700 7,500 7,500 3,800 3,800 1,270,300 740,500 281,200 110,000 43,600 19,200 75,800 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 (%) 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 $4,600 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. Assuming 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 (retained earnings) would be by $ by $ because the allowance for doubtful accounts would be because bad debt expense would be by $ In addition, the stockholders' equity and net income by $ on the inco