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 cerk for Wig the following partially completed aging of receivables schedule as of the end of business on December 31, 2017: Days Past Due Not Past Customer Due 1-30 31-60 61-90 91-120 Over 120 Balance 20,000 ABC Beauty 20,000 Anger Wigs 8.000 6,000 Zodiad Beauty 3,900 3,900 Subtotals 1,304,400 754,500 299,100 119,200 37,400 17,600 75,500 The following accounts were unintentionally om tted from the aging schedule. Assume all due dates are for the current year excest for Vision Haral next year Customer Due Date Balance Arcade Beauty Aug. 17 $4,500 Creative Images Oct. 30 4,800 Excel Hair Products July 3 8,100 First Class Hair Care Sept. 8 7,300 Golden Images Nov. 23 3,500 Oh That Hair Nov. 29 2,800 One Stop Hair Designs Dec. 7 6,600 Visions Hair & Nail Jan. 11 4,600 Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1 % 1-30 days past due 2 31-60 days past due 12 61-90 days past due 31 38 91-120 days past due Over 120 days past due 85 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 Aug. 17 days Oct. 30 days Creative images Excel Hair Products First Class Hair Care July 3 days 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 totalu. If an amount box does not require an entry, leave it blank. Days Past Due 61-90 Wig Creations Company Aging of Receivables Schedule December 31, 2017 Not Past Days Past Days Past Balance Due Due 1-30 Due 31-60 20,000 20,000 8.000 3,000 3,900 3,900 1,304,400 754,500 299, 100 119,200 Days Past Due 91-120 Customer ABC Beauty Angel Wigs Zodiac Beauty Subtotals Arcade Beauty Days Past Due Over 120 37,400 17,600 76,600 Creative Images Excel Hair Products First Class Hair Care Golden Images Ohi That Hair One Stop Hair Designs Visions Hair til Totals Percent uncollectibles Estimate of uncollectible accounts 3. Estimate the allowance for doubtful accounts, based on ed on the aging of receivables schedule. 4. Assume that the allowance for doubtful accounts for a Creations has a credit balance of 54,900 before adjustment on December 31, 2017, Journalize the adjustment for un collectible accounts. If an amount box does not require an entry leave it blank Dec. 31 S. Assume that the adjusting entry in (4) was inadvertently emitted how would the mission affect the balance sheet and income statement? On the balance sheet, assets would be by In addition the stockholders equity (retained camingo) would be by s on the income statement because the allowance for doubtful accounts would be by because bad debt expense would be and net income