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 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 664,400 368,700 159,500 73,100 24,600 21,900 16,600 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 20Y1 $3,100 Creative Images Sept. 7, 20Y1 6,500 Excel Hair Products Oct. 17, 201 900 First Class Hair Care Oct. 24, 20Y1 2,100 Golden Images Nov. 23, 20Y1 700 Oh The Hair Nov. 29, 20Y1 3,700 One Stop Hair Designs Visions Hair and Nail Dec. 2, 20Y1 2,400 Jan. 5, 2012 7,900 Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible Not past due 2% 1-30 days past due 4 31-60 days past due 10 61-90 days past due 15 Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible Age Class Not past due 2% 1-30 days past due 4 31-60 days past due 10 61-90 days past due 15 91-120 days past due 35 Over 120 days past due Required: 75 Due Date May 28, 20Y1 Sept. 7, 20Y1 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 Creative Images Number of Days Past Due days days Excel Hair Products Oct. 17, 20Y1 days First Class Hair Care Oct. 24, 20Y1 days Golden Images Nov. 23, 20Y1 days Oh The Hair Nov. 29, 20Y1 days One Stop Hair Designs Dec. 2, 20Y1 days Visions Hair and Nail Jan. 5, 20Y2 days 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. In assignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator &inprogress=false 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 requir an entry, leave it blank.. Wig Creations Company Aging of Receivables Schedule December 31, 201 Customer Balance Not Past Due 30 Days Past Due 1- Days Past Due 31- Days Past Due 61- Days Past Due 91- 60 Days Past Due Ove 90 120 120 Subtotals Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs Visions Hair and Nail- Total Percent uncollectible Estimate of uncollectible. accounts 2% 4% 10% 15% 35% 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 0.00 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $1,600 before adjustment on December 31, 20Y1. Journalize the Previous 75% Next>> Estimate of uncollectible accounts O O O O 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 $1,600 before adjustment on December 31, 20Y1. Journalize the adjustment for uncollectible accounts.. 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 by the allowance for doubtful accounts would be addition, the owner's capital account would be because bad debt expense would be by by by on the income statement. and net income because In Previous Next >