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 derfor Wig Creation prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2011: Not Days Past Due Past Customer Balance Over Due 1-30 31-60 61-90 ABC Beauty 91-120 120 15,000 15,000 Angel Wigs 8,000 8,000 Zodiac Beauty 3,000 3,000 Subtotals 875,000 415,000 210,000 112,000 55,000 18,000 65,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty $10,000 8,500 Creative Images 7,500 Excel Hair Products Aug. 17, 2011 Oct. 30, 2011 July 3, 2011 Sept. 8, 2011 Nov. 23, 2011 Nov. 29, 2011 First Class Hair Care 6,600 3,600 Golden Images 1,400 Oh That Hair 4,000 One Stop Hair Designs Dec. 7, 2011 Jan. 11, 2012 9,000 Visions Hair & Nail Previous My Work (for Grading eBook VISTOTIS W 2012 AUUU Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1 % 4 16 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due 25 40 80 Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zer Customer Due Date Number of Days Past Due Arcade Beauty Aug. 17, 2011 Creative Images Oct. 30, 2011 Excel Hair Products July 3, 2011 days days days days First Class Hair Care Sept. 8. 2011 Golden Images Nov. 23, 2011 Nov. 29, 2011 days days Oh That Hair days Dec. 7, 2011 One Stop Hair Designs Visions Hair & Nail days Jan 11, 2012 Check My Work All work swed 80 888 & 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 requ an entry, leave it blank. Wig Creations Company Aging of Receivables Schedule December 31, 2011 Days Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Past Due Over 120 Customer Balance $15,000 $15,000 8,000 ABC Beauty Angel Wigs Zodiac Beauty 8,000 Subtotals Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair and Nail 409 25 49 19 Total Percent uncollectible Previous Estimate of uncollectible accounts SA for Grade First ass Hair Care Golden Images On That Hair One Stop Hair Designs Visions Hair and Na Total Percent uncollectible Estimate of uncollectible accounts 164 25% 404 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule 4. Assume that the allowance for double accounts for Wig Creations as a credit balance of 37.375 before adjustmere on December L.2011. Jutaathe adjustment for collectible acts of an amount box does not reoirean entry, leave it bank 5. Assume that the adjusting entry in (4) was inadvertently on the how would the missioned the balance sheet come statement On the balance sheet, assets would be by because the lowance for de In addition, the owner's capitalent would be Because and income on the content Ches: My Wor Previous All Surfer Gay 6 5 4 7 8 9 0 1 P E 0 R Y T D F H G C M. B. V N
