Obj. 4 Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts EXCEL TEMPLATE receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y7: D E F Days Past Due G H A 1 Not 2 Past 3 Customer 4 ABC Beauty 5 Angel Wigs Balance Due 15,000 15,000 8,000 1-30 61-90 91-120 Over 120 31-60 8,000 30 Zodiac Beauty 31 Subtotals 3,000 875,000 415,000 210,000 112,000 3,000 55,000 18,000 65,000 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. Balance Due Date Customer $10,000 Aug. 17 Arcade Beauty 8,500 Oct. 30 Creative Images 7,500 July 3 Sept. 8 Excel Hair Products 6,600 First Class Hair Care 3,600 Nov. 23 Golden Images 1,400 Nov. 29 Oh That Hair 4,000 Dec. 7 One Stop Hair Designs 9,000 Jan. 11 Visions Hair & Nail Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Age Class Uncollectible 196 Not past due 1-30 days past due 31-60 days past due 4 16 61-90 days past due 91-120 days past due Over 120 days past due 25 40 80 Instructions 1. Determine the number of days past due for each of the preceding accounts. 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Answer Check Figure: $123,235 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $7,375 before adjustment on December 31. Journalize the adjustment for uncollectible accounts. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement