Estimating Allowance for Doubtful Accounts

Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Age Class Nat past due 1-30 days past due 31-50 days past due 61-90 days past due 91-120 days past due Over 120 days past due Required: I. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. Aging of Receivables; Estimating Allowance for Doubtful Accounts Wig Creations Company supplies Rigs and hair care products to beauty salons throughout Texas and the Southvvest, The accounts receivable clerk for Wig Creations prepared Lhe partially aging Of receivables schedule as Cf the end Of business an December 31, 20 Y 1: Days Past Due 31-60 the balan sheet and allowan for doubtful Customer Balance Subtotals 557,000 Not Past Due 309,100 1-30 133,700 51,300 61-90 20,600 91-120 18,400 over 120 13,900 The following accounts were unintentionally omitted from the aging schedule: Customer Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs ViSlOnS Hair and Nail Due Date May 28, 20Y1 Sept. 7, 20Y1 Oct. Oct, 17, 20Y1 24, 20Y1 Nav. 23, 20M L Nov. 29, 20Y1 Dec. 2, 20Y1 5, 20Y2 Balance 53,000 6,300 2,100 3,600 2,300 7,700 Customer Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Images oh Hair One Stop Hair Designs Visions Hair and Nail Due Date May 28, 20Y1 sept. 7, 20Y1 Oct. Oct. Jan. 17, 20Y1 24, 20Y1 23, 20Y1 29, 20Y1 Dec. 2, 20Y1 5, 20Y2 Number Of Days Past Due days days days days days days 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 2ntry, leave it blank. Wig Company Aging of Schedule 31, 20Y1 Not Past Balance Days Past 1. Days Past 31- Days Past D 61- 31, Days Past Du Subtotals Arcade Beauty Creative Images Excel Hair First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs Visions Hair Nail Total percent uncollectible Estimate of uruollectible e 91- the Days Past D 80% accou n ts 3. Estimate the allowan. for dwbtful aanunts, of reivables hedule. 4. amme the ror accounts ror Wig a or $1,740 bero for uncolltjole a Adjust e the (4) &dvertently omitted, o .ddition. the owne"s ital end net income debt would state me