Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Capri Wigs Company supplies wigs and hair care products to beauty salons throughout California and the Pacific Northwest. The accounts receivable clerk for Capri Wigs

image text in transcribed
image text in transcribed
image text in transcribed
Capri Wigs Company supplies wigs and hair care products to beauty salons throughout California and the Pacific Northwest. The accounts receivable clerk for Capri Wigs prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2011. Aging of Receivables Schedule December 31, 2011 Past Due 4 Customer 5 Absolute Beauty Blonde wigs 8.000 30 Zensational Beauty 3000 2000. 150,000 40,000 18.000 25.000 The following accounts were unintentionally omitted from the aging schedule Customer ue Date May 28, 20 Paradise Beauty Store Sept. 7, 2011 Amazing Hair Products 7, 20 Hairy's Hair Care Oct. 24, 2011 Golden Images Nov. 23, 2011 Oh The Hair Nov. 29, 2011 3,500 All About Hair Dec. 2, 2011 Lasting Images Jan. 5, 2012 Capri Wigs Company has a past history of uncollectible accounts by age category, as follows Age Class Percentage Uncollectible Not past due 1-30 days past due 31-60 days past due 12 61-90 days past due 20 days past due 40 Over 120 days past due 75 Answer the following questions: 1. Determine the number of days past each of the preceding accounts (8 marks 2. Complete the aging of receivables schedule. (8 marks) 3. Estimate the allowance of doubtful accounts, based on the aging of receivables (7 marks 4. Assuming that the allowance for doubtful accounts for Capri Wigs Company has a credit balance of $3,040 before adjustment on December 31, 2011. Journalize the adjusting entry for uncollectible accounts. marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Risk Assessment Building A Fraud Audit Program

Authors: Leonard W. Vona

1st Edition

047012945X, 978-0470129456

More Books

Students also viewed these Accounting questions

Question

Explain the importance of nonverbal messages.

Answered: 1 week ago

Question

Describe the advantages of effective listening.

Answered: 1 week ago

Question

Prepare an employment application.

Answered: 1 week ago