Aging of Receivables: Estimating Allowance for Doubtiel Accounts Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable derk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2017 Days Past Du Not Past Due 1-30 31-60 61-90 91-120 Over 120 Customer AUC Beauty Balance 19,500 7.800 19,800 Angel Wios 7,800 Zodiac Beauty 3,900 5.900 Subtotal 1,310,400 755,000 287,400 121,300 23,800 81.600 The following accounts were unintention: Lomilted from the song schedule. Assume due dates are for the current year except for Valon Hairmail, which is due as the net Customer Due Date Balance Arcade Beauty Aug. 17 $4.500 Creative Images Oct. 30 4.800 Excel Hair Products July 3 7.900 First Class Hair Care Sept. 8 6,500 Golden Images Nov. 23 3.100 Oh That Hair Nov. 29 2.100 One Stop Hair Designs Dec. 7 7,200 Visions Hair & Nail Jan 11 4,700 Wig Creations has a past history of uncollectible accounts by category, as follows: Percent Age Class Uncollectible Not past due 1 1-30 days past due 3 31-60 days past due 9 61.90 days past due 29 91-120 days past due 42 Over 120 days past due 79 > Required: 1. Determine the number of days past due for each of the preceding accounts. If an account is not post due to Customer Due Date Number of Days Past Due Arcade Beauty Aug. 17 days Creative Images Oct. 30 days days Excel Hair Products July 3 days First Class Hair Care Sept. 8 days Golden Images Nov. 23 Oh That Hair Nov. 29 days One Stop Hair Designs Doc. days days Visions Hair & Nail Jan. 11 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. an amount box does not require an entry leave it blank. Wig Creations Company Aging of Receivables Schedule December 31, 2047 Not Past Days Past Days Past Days Past Days Past Days Past Balance Due Due 1-30 Due 31-60 Due 61.90 Due 91-120 Due Over 120 Customer ABC Beauty 19,800 19,800 Angel Wigs 7,800 7,800 Zodiac Beauty 3,900 3.900 Subtotals 1,310,400 755,000 287.400 121.300 41,300 23.800 81,600 Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images 11 Oh That Hair WOOD TV One Stop Hair Designs Visions Hair & Nail Totals Percent uncollectible (4) Estimate of uncollectible accounts 1. Estimate the allowance for doubttur accounts, based on the main of receivable schedule 4. Asume that the allowance for doubtlul accounts for We Creations han a cede balance of $9,000 before adjustment on December 31, 2017, Soumalize the adjustment for uncollectible accounts. If an amount box does not require an entry leave it blank Dec. 31 by 5. 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 addition, the stockholders' equity (retained earnings) would be by because bad debt expense would be by on the income statement dnet Income
