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, 2011 Customer Balance Not Past Due 450,800 1-30 195,000 over 120 Days Past Due 61-90 91-120 30,100 26,800 31-60 89,400 Subtotals 812,400 20,300 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair May 28, 2011 Sept. 7, 2011 Oct. 17, 2011 Oct. 24, 2011 Nov. 23, 2011 Nov. 29, 2011 Dec. 2, 2011 Jan 5, 2012 $2,500 5,200 700 1,700 600 3,000 1,900 One Stop Hair Designs 6.400 Visions Hair and Nail Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1-30 days past due 31-60 days.nast de Previous Next > TTK MY Workmore Check My Work uses romang 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due Required: 1. Determine the number of days past o re of the preceding accounts account is not est a nter a mer Customer Due Date Number of Days Past Due Arcade Beauty May 28, 2011 Creative Images days Sept. 7, 2011 Oct. 17, 2011 Excel Hair Products days First Class Hair Care Oct 24, 2011 days Golden Images Oh The Hair Nov. 29, 2011 One Stop Hair Designs Dec. 2, 2011 Jan 5, 2012 days days Visions Hair and Nail 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, 2011 Customer Balance Not Past Due Days Past Due 1-30 Days Past Du 60 Days Past Du 61-90 Days Past Du 91 120 Days Past Due Over 120 We Creations ging of Receivables Schedule December 31, 2011 30 Days Past Du 31-60Days Pa Balance Ne Past Days Past Subtotals y s Creative Excel Hair Products Oh The One Stop Hair Designs Visions han and Nail Total Percent uncollectible stimate of collecti o ns 3. Estimate the allowance for doubtful accounts based on the aging of receivables schedule 4. Assume that the wo n de re Check My Work 3 more Check My Work uses remang ebook Calculator Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs Visions Hair and Nail Total Percent uncollectible Estimate of uncollectible accounts 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 $1,450 before adjustment on December 31, 2011. Journalize the adjustment for uncollectible accounts. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? by On the balance sheet, assets would be would be because the allowance for doubtful accounts would be because bad debt expense would be and net income In addition, the owner's capitalace on the income statement by by Previous