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 Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2017: Not Days Past Due Past 61-90 91-120 31-60 Over 120 Customer Balance Due 1-30 19,800 ABC Beauty Angel Wigs 19,800 8,000 8,000 Zodiac Beauty 4,500 4,500 Subtotals 1,286,200 753,000 284,800 114,300 41,300 17,800 75,000 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 Due Date Balance Arcade Beauty Aug. 17 $5,000 Creative Images Oct. 30 5,400 Excel Hair Products July 3 8,200 First Class Hair Care Sept. 8 7,000 Golden Images Nov. 23 3,000 AB 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 Due Date Balance Arcade Beauty Aug. 17 $5,000 Creative Images Oct. 30 5,400 Excel Hair Products July 3 8,200 First Class Hair Care Sept. 8 7,000 Golden Images Nov. 23 3,000 Oh That Hair Nov. 29 2,600 One Stop Hair Designs Dec. 7 7,100 Visions Hair & Nail Jan. 11 4,000 Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible 1% Not past due 1-30 days past due 31-60 days past due 3 9 31 61-90 days past due 91-120 days past due 38 84 Over 120 days past due 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. Due Date Number of Days Past Due Aug. 17 days Oct. 30 days Customer Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images July 3 days Sept. 8 days 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 totals. If an amount box does not require an entry, leave it blank. Wig Creations Company Aging of Receivables Schedule December 31, 2017 Not Past Days Past Days Past Days Past Days Past Due Due 1-30 Due 91-120 Customer Due Over 120 Days Past Balance Due 31-60 Due 61-90 ABC Beauty 19,800 19,800 Angel Wigs 8,000 8,000 Zodiac Beauty 4,500 4,500 Subtotals 1,286,200 753,000 284,800 114,300 41,300 17,800 75,000 Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images eBook Calculator Calculator C Balance Due Due 130 Due 360 we 90 Due 9120 Due Over 120 Customer ABC Beauty 19,800 19,800 Angel Wigs 8,000 8,000 Zodiac Beauty 4,500 4,500 Subtotals 1,286,200 753,000 284,800 114,300 41,300 17,800 75,000 Arcade Beauty Creative Images Excel Hair Products 11100 First Class Hair Care
