Book Calle Aging of Receivables; Estimating Allowance for Doubtful Accounts Wig Creations Company supplies wigs and her care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the fonowing partially completed aging of receivables schedule as of the end of business on December 31, 2011: Days Past Due Customer Balance Not Paste 1- 30 3 1-60 61-90 91-120 over 120 Subtotals 906,300 503,000 217,500 99,700 33,500 29,900 22,700 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 2011 $3,000 Creative Images Sept. 7, 2011 6,400 Excel Hair Products Oct. 17, 2011 900 First Class Hair Care Oct 24, 2011 2,100 Golden Images Nov. 23, 2011 700 Oh The Hair Nov. 29, 2011 3,700 One Stop Hair Designs Dec 2, 2011 2,300 Visions Hair and Nail Jan 5, 2012 7,800 Wig Creations has past history of uncollectie accounts by age category, as follows: Age Class Percent Unclectible Not bast due Check My Work 3 more Check My Work uses remaining eBook Calculator Age Class Percent Unco lectible 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 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. Customer Due Date Number of Days Past Due Arcade Beauty May 28, 2011 Creative Images days days days Sept. 7, 2011 Oct. 17, 2011 Oct. 24, 2011 Excel Hair Products First Cass Hair Care Golden Images Nov. 23, 2011 On The Hair Nov. 29, 2011 One Stop Hair Designs Dec. 2, 2011 Vans Hand Nail Jan 5, 2012 days Check My Work 3 more Check My Work uses remaining Previous Nex book Calculate 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 Days Past Duel Days Past Dua 31. Days Past Due 51. Days Past Due 91 Days Past Due Over Not Past Customer Balance Arcade Beauty Creative Images Excel Hair Products Fest Cass Hair Care Golden Images Oh The H One Stop Hair Designs Vision and all Total Percent uncollection Estimate of uncollectible accounts 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Check My Work 3 more Check My Work uses remaining Previous Next > HON ebook on The One Stop Mar Design Visions and Estimate functie 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule 4. Assume that the the adjustment for owner doubt collecti o ns s for wig Creations as a credit balance of $1,900 before adjustment on December 31, 2011. Journalize 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the mission affect the balance sheet and income statement? On the balance sheet, assets would be because the allowance for doubtful accounts would be In addition, the owner's capital account would be and not income by on the income statement bad cott expense would be because Chuck My Wor more Check My Work uses romaining
