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 partially completed aging of receivables schedule as of the end of business on December 31, 20Y1 Days Past Due Customer Balance Not Past Due 1 30 31 60 61 90 91 120 over 120 Subtotals 660,200 366,500 158,400 72,600 24,400 21,800 16,500 The following accounts were unintentionally omitted from the aging schedule Customer Due Date Balance Arcade Beauty May 28, 20Y1 $2,900 Creative Images Sept 7, 20Y1 6,100 Excel Hair Products Oct 17, 20Y1 800 First Class Hair Care Oct 24, 20Y1 2,000 Golden Images Nov 23, 20Y1 700 Oh The Hair Nov 29, 20Y1 3,500 One Stop Hair Designs Dec 2, 20Y1 2,200 Visions Hair and Nail Jan 5, 20Y2 7,400 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 3 31 60 days past due 12 61 90 days past due 18 91 120 days past due 40 Over 120 days past due 80 Required 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 May 28, 20Y1 days Creative Images Sept 7, 20Y1 days Excel Hair Products Oct 17, 20Y1 days First Class Hair Care Oct 24, 20Y1 days Golden Images Nov 23, 20Y1 days Oh The Hair Nov 29, 20Y1 days One Stop Hair Designs Dec 2, 20Y1 days Visions Hair and Nail Jan 5, 20Y2 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, 20Y1 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 Subtotals Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs Visions Hair and Nail Total Percent uncollectible 1 3 12 18 40 80 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 $1,630 before adjustment on December 31, 20Y1 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 On the balance sheet, assets would be by because the allowance for doubtful accounts would be by In addition, the owners capital account would be by because bad debt expense would be and net income by on the income statement

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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

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 partially completed aging of receivables schedule as of the end of business on December 31, 20Y1:

			Days Past Due
Customer	Balance	Not Past Due	1-30	31-60	61-90	91-120	over 120
Subtotals	660,200	366,500	158,400	72,600	24,400	21,800	16,500

The following accounts were unintentionally omitted from the aging schedule:

Customer		Balance
Arcade Beauty	May 28, 20Y1	$2,900
Creative Images	Sept. 7, 20Y1	6,100
Excel Hair Products	Oct. 17, 20Y1	800
First Class Hair Care	Oct. 24, 20Y1	2,000
Golden Images	Nov. 23, 20Y1	700
Oh The Hair	Nov. 29, 20Y1	3,500
One Stop Hair Designs	Dec. 2, 20Y1	2,200
Visions Hair and Nail	Jan. 5, 20Y2	7,400

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	3
31-60 days past due	12
61-90 days past due	18
91-120 days past due	40
Over 120 days past due	80

Required:

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	May 28, 20Y1	days
Creative Images	Sept. 7, 20Y1	days
Excel Hair Products	Oct. 17, 20Y1	days
First Class Hair Care	Oct. 24, 20Y1	days
Golden Images	Nov. 23, 20Y1	days
Oh The Hair	Nov. 29, 20Y1	days
One Stop Hair Designs	Dec. 2, 20Y1	days
Visions Hair and Nail	Jan. 5, 20Y2	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, 20Y1
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
Subtotals
Arcade Beauty
Creative Images
Excel Hair Products
First Class Hair Care
Golden Images
Oh The Hair
One Stop Hair Designs
Visions Hair and Nail
Total
Percent uncollectible		1%	3%	12%	18%	40%	80%
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 $1,630 before adjustment on December 31, 20Y1. 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?

On the balance sheet, assets would be by because the allowance for doubtful accounts would be by . In addition, the owners capital account would be by because bad debt expense would be and net income by on the income statement.