eBook T 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, 20Y1: Days Past Due Customer Balance Subtotals 881,500 Not Past Due 1-30 489,200 31-60 61-90 91-120 over 120 211,500 97,000 32,600 29,100 22,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 2011 $3,100 Creative Images Sept. 7, 2011 6,600 Excel Hair Products Oct. 17, 20Y1 900 First Class Hair Care Oct. 24, 2011 2,200 Golden Images Nov. 23, 201 700 Oh The Hair Nov. 29, 201 3,800 One Stop Hair Designs Visions Hair and Nail Dec. 2, 2011 2,400 Jan. 5, 2012 8,000 Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent m/takeAssignment/takeAssignmentMain.do?invoker &takeAssignmentSessionLocator &inprogress=false eBook Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Not past due Percent Uncollectible 1% 1-30 days past due 2 31-60 days past due 12 61-90 days past due 18 91-120 days past due 40 Over 120 days past due 80 59 ES May 28, 2011 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 Arcade Beauty Due Date Number of Days Past Due days Creative Images Sept. 7, 2012 days Excel Hair Products Oct 17, 201 days First Class Hair Care Oct 24, 2013 days Golden Images Nov. 23, 2011 days On The Hair Nov. 29, 2013 days One Stop Hair Designs Dec. 2. 2011 days Check My Work more Check My From using L takeAssignment/takeAssignmentMain.do?invokere&takeAssignmentSessionLocatore&inprogress=false * M D eBook One Stop Hair Designs Dec. 2, 201 Visions Hair and Nail Jan. 5, 2012 days days 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, 201 Customer Balance Not Past Due Days Past Due 1-30 Subtotals Days Past Due 31-60 Days Past Duel 61-90 Days Past Due 91-120 Days Past Due Over 120 Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs Visions Hair and Nall Total Percent uncollectible Fetimate of Check My Work mors Check My Work uses remaining 12% 10% 40% 30% RignmentMain.do?invoker&takeAssignmentSessionLocator &inprogress=false eBook Oh The Hair One Stop Hair Designs Visions Hair and Nail Total Percent uncollectible Estimate of uncollectible accounts 1% 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. L 18% 40% 80% 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $1,770 before adjustment on December 31, 2011.- Journalize the adjustment for uncollectible accounts 4 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 because the allowance for doubtful accounts would be In addition, the owner's capital account would be by because bad debt expense would be by and net income by on the income statement. Check My Work 3 more Check My Work uses remaining