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 596,600 331,100 143,200 65,600 22,100 19,700 14,900 The following accounts were unintentionally omitted from the aging schedule: Customer Arcade Beauty Due Date Balance May 28, 20Y1 $2,600 Creative Images Sept. 7, 20Y1 5,500 Excel Hair Products Oct. 17, 20Y1 700 First Class Hair Care Oct. 24, 20Y1 1,800 Golden Images Nov. 23, 20Y1 600 Oh That Hair Nov. 29, 20Y1 3,100 One Stop Hair Designs Dec. 2, 20Y1 2,000 Visions Hair & Nail Jan. 5, 20Y2 6,700 Wig Creations has a past history of uncollectible accounts by age category, as follows: Customer Arcade Beauty Creative Images Due Date Balance May 28, 20Y1 Sept. 7, 20Y1 Excel Hair Products Oct. 17, 20Y1 $2,600 5,500 700 First Class Hair Care Oct. 24, 20Y1 1,800 Golden Images Nov. 23, 20Y1 600 Oh That Hair Nov. 29, 20Y1 3,100 One Stop Hair Designs Dec. 2, 20Y1 2,000 Visions Hair & Nail Jan. 5, 20Y2 6,700 Wia Creations has a past history of uncollectible accounts by age category as follows: 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 Not Past Due Days Past Due 1-30 Days Past Due 31-60 Days Past Days Past Days Past Due Due 61-90 Due 91-120 Over 120 Customer Balance Subtotals 619,600 X 6,700 X 2,000 X 3,700 X 2,500 X 25,200 X 17,500 X Arcade Beauty 2,600 Creative Images Excel Hair Products First Class Hair Care Golden Images Oh That Hair One Stop Hair Designs Visions Hair & Nail Total 600 3,100 2,000 6,700 5,500 700 1,800 Percent uncollectible 2% 4% 12% 18% 40% 85% Estimate of uncollectible accounts 50,263 6,756 5,808 8,316 4,428 10,080 X 14,875 Feedback 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. Feedback 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $1,710 before adjustment on December 31, 20Y1. Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. Bad Debt Expense Feedback 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 by because bad debt expense would be because the allowance for doubtful accounts would be and net income by . In addition, the owner's capital account would be by on the income statement