Estimation We can compared with care products to be one throughout the there we will come end of on December 31 Days Past Past Balance Due 1-70 11-60 510 01-120 Over 120 Customer Ace Angel Wire 20,10 20.700 7.100 7.100 > 200 4.500 40000 1.707.00 27.000 110200 32.100 1600 500 The accounts were invited the schedule. Assume for the ce for a which is the Customer bu tate Balance Arcade 15.100 Ce image OL. 30 4,000 white N 7.900 Care 7.100 Now >> 200 Oh Tu 30 2,300 De Designs Dec VNI Tan 11 100 Want hy die hues Puca collectible NOE DER 1-3 days 31 de 20 MIT Set ARE 1:12 TE T! LE Per Ages 2. cunde ha recebes how the comes the boten en het must be does Wig Creations com Aging of Receivables Schedule December 11, 2017 Days Past De 31-10 Days Past Due 619 Days Past 91-120 Days Over 10 Customer AC Al W Didace Nota Balance Due 100 30,700 20.700 . 4.500 4.500 1.29740757.000 2200 7.500 119,00 37.000 17.00 Ostia Bo Products 0 01111111loit! mmm Gema OT One S HD Vir Totale pumil 3. time the words tech doctor w 5400 breton December 31, 2017 De who had come Before tata at - 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, 2017: Days Past Due 31-60 Past Due 20,700 61.90 91-120 Customer ABC Beauty Angel Wigs Over 120 Balance 20,700 7.500 7.500 4,500 15.100 7,500 Zooty 4.500 1.297.400 757,000 110,200 37.000 17.600 10.500 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nail, which is due in the next year. Customer Due Date Balance Arcade Aug. 17 Creative Images 0.0 Excel Products 7,900 First Class roar Care Seot Golden Images Nov 23 3,000 Oh That No. 2 2.300 One Stop Hair Designs Dee 7.000 Visionar 4.700 Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible Notas de 2-30 days to 31-60 dpt our 11 61-90 days pastor 31 91-120 days pastor Over 120 Gays postur 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 By 136 days Creative Images Oct 30 52 days Excel Mar Products wy First Car Care 114 days Golden Images On That 181 days Septa 38 days 2 days Dec 7 24 day One Shop Designs Visions Moir & Nail Jan 11 . 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, 2017 at Past Days Past Days Past Days Past Days Post Days Past Due 33-40 De 6-9 Due 3-120 Due Over 120 Customer Balance Due Due 1-30 c v C 20.700 20.700 Angel Wigs 7.500 beauty 4.500 4500 Subtot 1,297,400 757.000 294.200 150.200 37.900 17,600 30.500 Arcade Creative Images El Products First Class Hair Care Golden Images Di Ta vai One Stop Hair Designs Visions ar Tot Percent uncollectible) Estimate of collectible accounts Feedback Add the accounts into the aging schedule based on their number of days past due Apply the respective uncollectible percentage to the total receivables in each days past due group and the not past due group 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Feedback Add the accounts into the aging schedule based on their number of days past due. Apply the respective uncollectible percentage to the total receivables in each days past due group and the not past due group. 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $4,200 before adjustment on December 31, 2047. Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. Dec 11 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 by $ because the allowance for doubtful accounts would be by $ . In addition, the stockholders' equity (retained earnings) would be by $ because bad debt expense would be and net income by $ on the income statement. Feedback Check My Work Consider the effects of a contra asset not being recorded in terms of the balance sheet equation. Consider the effects of an expense not being reported in terms of the income equation. Feedback Check My Work Partially correct