PR 8-2B 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 par- tially completed aging of receivables schedule as of the end of business on December 31, 20Y7: Obj. 4 Days Past Due Not Past Balance Due 1-30 31-6061-90 91-120 Over 120 Customer ABC Beauty Angel Wigs 15,000 15,000 8,000 8,000 30 Zodiac 31 Subtotals 3,000 3,000 875.000 415,000 210,000 112,00055,000 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. Customer Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nail Due Date Aug. 17 Oct. 30 July 3 Sept. 8 Nov. 23 Nov. 29 Dec. 7 Jan. 11 Balance $10,000 8,500 7,500 6,600 3,600 1,400 4,000 9,000 Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Uncollectible 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 16 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. 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 5.Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement