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 : 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 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 the stockholders' equity (retained earnings) would be the stockholders' equity (retained earnings) would be by $ by on the income statement. because the allowance for doubtful accounts would be by $ because bad debt expense would be by $ and net income . In addition, ncome Wig Creations Company Aging of Receivables Schedule Wig Creations has a past history of uncollectible accounts by age category, as follows: 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