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 $31,20$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 $20,30020,300$

Angel Wigs $7,6007,600$

Zodiac Beauty $3,9003,900$

Subtotals $1,289,000741,100284,500122,30042,10019,00080,000$

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 $17$ $$4,700$

Creative Images October $305,400$

Excel Hair Products July $37,900$

First Class Hair Care September $87,400$

Golden Images November $233,500$

Oh That Hair November $292,100$

One Stop Hair Designs December $76,800$

Visions Hair & Nail January $114,800$

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 $28$

$91-120$ days past due $41$

Over $120$ days past due $84$

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 $8$

$136$

days

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

$62$

days

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

$181$

days

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

$114$

days

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

$38$

days

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

$32$

days

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

$24$

days

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

$0$

days

Question Content Area

$2.$ 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 $31,20$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 $20,30020,300$ blank blank blank blank blank

Angel Wigs $7,600$ blank blank $7,600$ blank blank blank

Zodiac Beauty $3,900$ blank $3,900$ blank blank

Subtotals $1,289,000741,100284,500122,30042,10019,00080,000$

Arcade Beauty Arcade Beauty

Arcade Beauty

Arcade Beauty

Arcade Beauty

Arcade Beauty

Arcade Beauty

Arcade Beauty

Creative Images Creative Images

Creative Images

Creative Images

Creative Images

Creative Images

Creative Images

Creative Images

Excel Hair Products Excel Hair Products

Excel Hair Products

Excel Hair Products

Excel Hair Products

Excel Hair Products

Excel Hair Products

Excel Hair Products

First Class Hair Care First Class Hair Care

First Class Hair Care

First Class Hair Care

First Class Hair Care

First Class Hair Care

First Class Hair Care

First Class Hair Care

Golden Images Golden Images

Golden Images

Golden Images

Golden Images

Golden Images

Golden Images

Golden Images

Oh That Hair Oh That Hair

Oh That Hair

Oh That Hair

Oh That Hair

Oh That Hair

Oh That Hair

Oh That Hair

One Stop Hair Designs One Stop Hair Designs

One Stop Hair Designs

One Stop Hair Designs

One Stop Hair Designs

One Stop Hair Designs

One Stop Hair Designs

One Stop Hair Designs

Visions Hair & Nail Visions Hair & Nail

Visions Hair & Nail

Visions Hair & Nail

Visions Hair & Nail

Visions Hair & Nail

Visions Hair & Nail

Visions Hair & Nail

Totals Totals

Totals

Totals

Totals

Totals

Totals

Totals

Percent uncollectible $(\%)$ Percent uncollectible $(\%)$

$\%$ Percent uncollectible $(\%)$

$\%$ Percent uncollectible $(\%)$

$\%$ Percent uncollectible $(\%)$

$\%$ Percent uncollectible $(\%)$

$\%$ Percent uncollectible $(\%)$

$\%$

Estimate of uncollectible accounts $Estimate of uncollectible accounts

$Estimate of uncollectible accounts

$Estimate of uncollectible accounts

$Estimate of uncollectible accounts

$Estimate of uncollectible accounts

$Estimate of uncollectible accounts

$Estimate of uncollectible accounts

Question Content Area

$3.$ Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.

fill in the blank $1$ of $1$$

Question Content Area

$4.$ Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $$3,500$ before adjustment on December $31,20$Y$7.$ Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank.

DateAccountDebitCredit

Dec. $31$