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 for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31,20Y7 : 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. 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 $7,375 before adjustment on December 31 . Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. Dec. 31 5. Assuming 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 Aging of Receivables Schedule December 31, 20 Y7 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. 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. Nig Creations has a past history of uncollectible accounts by age category, as follows