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Aging of Receivables; Estimating Allowance for Doubtful Accounts

Wig Creations Company 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 $31,20$Y$1$:

Days Past Due

Customer Balance Not Past Due $1-3031-6061-9091-120$ over $120$

Subtotals $726,200402,900174,30079,90026,90024,00018,200$

The following accounts were unintentionally omitted from the aging schedule:

Customer Due Date Balance

Arcade Beauty May $28,20$Y$1$ $$2,900$

Creative Images Sept. $7,20$Y$16,100$

Excel Hair Products Oct. $17,20$Y$1800$

First Class Hair Care Oct. $24,20$Y$12,000$

Golden Images Nov. $23,20$Y$1700$

Oh The Hair Nov. $29,20$Y$13,500$

One Stop Hair Designs Dec. $2,20$Y$12,200$

Visions Hair and Nail Jan. $5,20$Y$27,400$

Wig Creations has a past history of uncollectible accounts by age category, as follows:

Age Class Percent Uncollectible

Not past due $2\%$

$1-30$ days past due $4$

$31-60$ days past due $10$

$61-90$ days past due $15$

$91-120$ days past due $35$

Over $120$ days past due $80$

Required:

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$1.$ 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 $28,20$Y$1$ fill in the blank af$1752$fe$7047001\_1$

days

Creative Images Sept. $7,20$Y$1$ fill in the blank af$1752$fe$7047001\_2$

days

Excel Hair Products Oct. $17,20$Y$1$ fill in the blank af$1752$fe$7047001\_3$

days

First Class Hair Care Oct. $24,20$Y$1$ fill in the blank af$1752$fe$7047001\_4$

days

Golden Images Nov. $23,20$Y$1$ fill in the blank af$1752$fe$7047001\_5$

days

Oh The Hair Nov. $29,20$Y$1$ fill in the blank af$1752$fe$7047001\_6$

days

One Stop Hair Designs Dec. $2,20$Y$1$ fill in the blank af$1752$fe$7047001\_7$

days

Visions Hair and Nail Jan. $5,20$Y$2$ fill in the blank af$1752$fe$7047001\_8$

days

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$2.$ 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 $31,20$Y$1$

Customer Balance Not Past Due Days Past Due $1-30$ Days Past Due $31-60$ Days