Aging of Receivables; Estimating Allowance for Doubtful Accounts Wig Creations has a past history of uncollectible accounts by age category, as follows:

Required:

Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero.

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. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.

$ Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $$4,100$ before adjustment on December $31,20$Y$7.$ Journalize the adjustment for

uncollectible accounts. If an amount box does not require an entry, leave it blank.

Dec. $31$

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 $

because the allowance for doubtful accounts would be

by $

$.$ In addition, the stockholders' equity $($retained earnings$)$ would be$.$

by $

because bad debt expense would be

and net income

by $

on the income statement.

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 $31,20$Y$7$:

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.

Wig Creations has a past history of uncollectible accounts by age category, as follows: