Question Content Area

Aging of receivables; estimating allowance for doubtful accounts

Wig Creations 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 $31,20$Y$7$:

Customer Balance Not Past

Due Days Past

Due $1-30$ Days Past

Due $31-60$ Days Past

Due $61-90$ Days Past

Due $91-120$ Days Past

Due Over $120$

ABC Beauty $15,00015,000$

Angel Wigs $8,0008,000$

Zodiac Beauty $3,0003,000$

Subtotals $875,000415,000210,000112,00055,00018,00065,000$

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 Due Date Balance

Arcade Beauty August $17$ $$10,000$

Creative Images October $308,500$

Excel Hair Products July $37,500$

First Class Hair Care September $86,600$

Golden Images November $233,600$

Oh That Hair November $291,400$

One Stop Hair Designs December $74,000$

Visions Hair & Nail January $119,000$

Wig Creations has a past history of uncollectible accounts by age category, as follows:

Age Class Percent Uncollectible

Not past due $1\%$

$1-30$ days past due $4$

$31-60$ days past due $16$

$61-90$ days past due $25$

$91-120$ days past due $40$

Over $120$ days past due $80$

Required:

Question Content Area

$1.$ 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 Beauty August $17$ fill in the blank $1$ of $8$

days

Creative Images October $30$ fill in the blank $1$ of $8$

days

Excel Hair Products July $3$ fill in the blank $1$ of $8$

days

First Class Hair Care September $8$ fill in the blank $1$ of $8$

days

Golden Images November $23$ fill in the blank $1$ of $8$

days

Oh That Hair November $29$ fill in the blank $1$ of $8$

days

One Stop Hair Designs December $7$ fill in the blank $1$ of $8$

days

Visions Hair & Nail January $11$ fill in the blank $1$ of $8$

days