Aging of receivables; estimating allowance for doubtful accounts Wig Creations 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: Customer ABC Beauty Angel Wigs Zodiac Beauty Subtotals Customer Balance Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nail Required: 15,000 8,000 3,000 875,000 Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due Customer Arcade Beauty Creative Images Excel Hair Products Not Past Due First Class Hair Care 15,000 415,000 Due Date August 17 October 30 July 3 September 8 November 23 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. November 29 December 7 January 11 1% Wig Creations has a past history of uncollectible accounts by age category, as follows: 4 16 25 Percent Uncollectible 40 80 Days Past Due 1-30 3,000 210,000 Balance August 17 October 30 $10,000 8,500 7,500 6,600 3,600 1,400 4,000 9,000 Due Date July 3 September 8 Days Past Due 31-60 8,000 112,000 Days Past Due 61-90 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. Number of Days Past Due days days days days 55,000 Days Past Due 91-120 18,000 Days Past Due Over 120 65,000

Aging of receivables; estimating allowance for doubtful accounts Wig Creations supplies wigs and hair care products to beauty salons throuphout Texas and the Southwest. The accounts receivabie clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31 , 20 r7: The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair a Nail, which is due in the next year. Wig Creations has a past history of uncollectible accounts by age category, as follows: Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zoro. 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. 3. Estimate the allowance for doubtful accounts, based on the aging of recelvables schedule. 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $7,375 before adjustment on December 31 . tournalize the adjustment for uncollectible accounts, If an amount box does not require an entry, leave it blank. 5. Assuming thot the adjusting entry in (4) was inadvertentily omitted, now would the omission affect the balsnce sheet and income statement? On the balance sheet, assets mould be by 3 because the allowance for doutbul accounts woula be 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? income statement. Aging of receivables; estimating allowance for doubtful accounts Wig Creations supplies wigs and hair care products to beauty salons throuphout Texas and the Southwest. The accounts receivabie clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31 , 20 r7: The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair a Nail, which is due in the next year. Wig Creations has a past history of uncollectible accounts by age category, as follows: Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zoro. 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. 3. Estimate the allowance for doubtful accounts, based on the aging of recelvables schedule. 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $7,375 before adjustment on December 31 . tournalize the adjustment for uncollectible accounts, If an amount box does not require an entry, leave it blank. 5. Assuming thot the adjusting entry in (4) was inadvertentily omitted, now would the omission affect the balsnce sheet and income statement? On the balance sheet, assets mould be by 3 because the allowance for doutbul accounts woula be 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? income statement