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 DueCustomerBalanceNot Past Due1-3031-6061-9091-120Over 120Subtotals869,900482,800208,80095,70032,20028,70021,700

The following accounts were unintentionally omitted from the aging schedule:

CustomerDue DateBalanceArcade Beauty May 28, 20Y1$2,500 Creative Images Sept. 7, 20Y15,200 Excel Hair Products Oct. 17, 20Y1700 First Class Hair Care Oct. 24, 20Y11,700 Golden Images Nov. 23, 20Y1600 Oh That Hair Nov. 29, 20Y13,000 One Stop Hair Designs Dec. 2, 20Y11,900 Visions Hair & Nail Jan. 5, 20Y26,400

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

Age ClassPercent UncollectibleNot past due2%1-30 days past due4 31-60 days past due10 61-90 days past due15 91-120 days past due35 Over 120 days past due75

2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If amount box does not require an entry, leave it blank. 1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. \begin{tabular}{lll} Customer & Due Date \\ \hline Arcade Beauty & May 28, 20Y1 \\ 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 \\ Oh That Hair & Nov. 29, 20Y1 \\ One Stop Hair Designs \\ Visions Hair \& Nail & Dec. 2, 20Y1 \\ Jan. 5, 20Y2 \end{tabular} 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 $1,800 before adjustment on December 31,20Y1. Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. 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 bad debt expense would be by . In addition, the owner's capital account would be and net income because the allowance for doubtful accounts would be by by on the income statement