can anyone check if my answers are correct?
UL Fenos de he decor Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 91-120 120 15,000 ABC Beauty Angel Wigs 15,000 8,000 8,000 Zodiac Beauty Subtotals 3,000 875,000 3,000 210,000 415,000 112,000 55,000 18,000 65,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty Aug. 17, 2011 $10,000 Creative Images Oct. 30, 2011 8,500 Excel Hair Products July 3, 2011 7,500 First Class Hair Care Sept. 8, 2011 6,600 Golden Images Nov. 23, 2011 3,600 Oh That Hair Nov. 29, 2011 1,400 One Stop Hair Designs Dec. 7, 2011 4,000 Visions Hair & Nail Jan 11, 2012 9,000 Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible 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 4 16 25 40 30 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 Aug. 17, 2011 136 days Creative Images Oct. 30, 2011 62 days July 3, 2011 Excel Hair Products 181 days Sept. 8, 20Y1 114 days First Class Hair Care Golden Images Oh That Hair Nov. 23, 2011 38 days Nov. 29, 2011 32 days One Stop Hair Designs Dec. 7, 2011 24 days Visions Hair & Nail Jan. 11, 2012 o days 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 Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 $15,000 Balance $15,000 3,000 3.000 8,000 75,000 10.000 10.000 B.SCO 500 Customer ABC Beauty Angel Wigs Zodiac Beauty Subtotal Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair and Nail Total Percent uncollectible Estimate of uncollectible accounts 7.500 6.600 7.500 6.600 3.600 1.400 4.000 9000 3.600 1.400 4,000 9.000 925.600 424,000 19 4240 214,000 4% 117.000 16% 18.710 63,500 25% 16.07 34.400 40 9.040 32.500 80% 123,235 8.560 16.000 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 115,860 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $7,375 before adjustment on December 31, 2011, Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. Bad Debt Expense 115.860 Allowance for Doubtful Accounts 115,860 5. Assume that the adjusting entry in (a) was inadvertently omitted, how would the omission affect the balance sheet and income statement? On the balance sheet, assets would be overstated by $115,860 because the allowance for doubtful accounts would be understated by $115,860 In addition, the owner's.capital account would be overstated by $115,860 because bad debt expense would be understated and net income overstated by $115,860 on the income statement
