ng of Receivables, Estimating Allowance for Doubtful Accounts y 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 chedule as of the end of business on December 31, 2017 Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 ABC Beauty 19,200 19,200 Angel Wigs 7,700 7,700 Zodiac Beauty 3,800 3,600 Subtotals 1,305,200 749,000 209,200 129,800 42,700 17,500 77,000 The following accounts were intentionally 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 Beauty Aug 17 $5,400 Creative Images Oct. 30 Excel Hair Products July 3 8,100 First Class Hair Care Sept. 6,700 Golden Images Nov. 23 3,900 on That Hair Nov. 29 2,100 One Stop Hair Designs Dec 7 6,300 Visions Hair & Nai Jan 11 4,700 Wig Creation has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible Not past due 1% 1-30 days past due 3 31-60 days past de 11 61-90 days past due 29 91-120 days past de Over 120 days part de Required: 1. Determine the number of days past due for each of the preceding accounts an account is not past due, enter a zero Customer Due Date Number of Days Past Due Aug. 17 days Oct. 30 July 3 days days Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Sept. 8 days Nov. 23 days Nov. 29 days Dec. 7 days Visions Hair & Nal Jan. 11 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, 2017 Balance Not Past Due Days Past Days Past Due 1-30 Due 31-60 Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 7,700 Customer ABC Beauty Angel Wigs Zodiac Beauty Subtotals Arcade Beauty Creative Images Excel Hair Products 19,200 19,200 700 3,800 1,305,200 749,000 3,800 289,200 129,800 42,700 17,500 77,000 First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nail Totals Percent uncollectible (9) Estimate of uncollectible accounts Pre Aging of Receivabies Schedule December 31, 2017 Not Past Days Past Days Past Due Due 1-30 Due 31-60 Balance Days Past Due 61-90 Days Past Due 91-120 Days Past Due Over 120 19,200 19,200 7,700 3,800 7.700 3.000 289.200 1,305,200 749,000 129,800 42,700 17,500 77,000 Customer ABC Beauty Angel Wigs Zodiac Beauty Subtotals Arcade Beauty Creative Images Excel Har Products First Class Haw Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nai Tetas Percent uncollectible (9) Estimate of uncollectible accounts 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $3,000 before adjustment on December 31, 2017, Journaize the adjustment for collectible accounts. If an amount box does not require an entry, leave it blank Dec. 31 S. 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 s because the allowance for doubtful accounts would be would be by because bad debt expense would be and net income by by In addition, the stockholders' equity Cretained earnings) on the income statement Previous