P6-1 Allowance method for doubtful accounts atural Hair Company supplies wigs and hair care products to beauty salons throughout Texas nd the Southwest. The accounts receivable clerk for Natural Hair prepared the following ng-of-receivables schedule as of the end of business on December 31, 207 Not Past Days Past Due 3 Customer 4 AAA Beauty 5 Amelia's Wigs 8, Balance Due 1-30 31-60 61-90 91-120 19,500 19,500 000 8,000 ed 30 Zim's Beauty6,100 31 Totals 6,100 880,000 575,000140,500 82,700 36,000 25,000 20,800 Natural Hair Company has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due 196 15 35 80 Instructions 1. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule. 2. Assume that the allowance for doubtful accounts for Natural Hair Company has a negative balance of -$3,500 before adjustment on December 31, 20Y7. Illustrate the effect on the accounts and financial statements of the adjustment for uncollectible accounts