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, 2013 Days Past Due Customer Balance Not Past Due 1-30 31-60 61-90 91-120 over 120 Subtotals 681,100 378,000 163,500 74,900 25,200 22,500 17,000 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 2011 $2,600 Creative Images Sept. 7, 2011 5.400 Excel Hair Products Oct. 17, 2011 700 First Class Hair Care Oct 24, 2011 1,800 Golden Images Nov. 23, 2011 Oh The Hair Nov. 29, 2011 3,100 One Stop Hair Designs Dec 2, 2011 2,000 Visions Hair and Nail Jan 5, 2012 6,600 Wig Creations has a past history of uncollectible accounts by age category, as follows Percent Age Class 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 85 600 days 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, 2011 days Creative Images Sept. 7, 2011 Excel Hair Products Oct. 17, 2011 days First Class Hair Care Oct. 24, 2011 days Golden Images Nov. 23, 2011 days Oh The Hair Nov. 29, 2011 days One Stop Hair Designs Dec. 2, 2011 days Visions Hair and Nail Jan 5, 2012 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, 2011 Days Past Due 1 Days Past Due 31- Days Past Due 61- Days Past Due 91- 30 60 120 Customer Balance Not Past Due 90 Days Past Due Over 120 Subtotals Arcade Beauty Creative Images Excel Hair Products First Class Hair Care bi 0001 2000 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 Estimate of uncollectible accounts 1% 3% 12% 18% 40% 85% o 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 $1,830 before adjustment on December 31, 2071. Joumalize the adjustment for uncollectible accounts. S. 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 In addition, the owner's capital account would be by because bad debt expense would be and net income on the income statement by