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, 2011: Customer Balance Subtotals 637,100 Not Past Due 353,600 1-30 152,900 31-60 70,100 Days Past Due 61-90 91-120 23,600 21,000 over 120 15,900 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty $3,100 Creative Images 6,500 Excel Hair Products 900 First Class Hair Care 2,100 May 28, 2011 Sept. 7, 2011 Oct. 17, 2011 Oct. 24, 2011 Nov. 23, 2011 Nov. 29, 20Y1 Dec. 2, 2011 Jan. 5, 20Y2 Golden Images 700 Oh The Hair 3,700 2,400 One Stop Hair Designs Visions Hair and Nail 7.900 Wig Creations has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due Required: . 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 days Excel Hair Products Sept. 7, 2011 Oct. 17, 20Y1 Oct. 24, 20Y1 days First Class Hair Care days zero. Customer Due Date Number of Days Past Due Arcade Beauty May 28, 20Y1 days Creative Images days Sept. 7, 20Y1 Oct. 17, 2011 Excel Hair Products 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 ow.com/in/takeAssignment/takeAssignmentvid UUNIVUkei-exdREASSIyertesSIUNILULALUI - H Wig Creations Company Aging of Receivables Schedule December 31, 2011 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 1000000 111111000 00000000do 011110000 Golden Images Oh The Hair One Stop Hair Designs Visions Hair and Nail UUUUUU Juoda Total HUW.CUM LULU Total Percent uncollectible Estimate of uncollectible accounts Doso 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 $1,750 before justment on December 31, 2011. 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 doubtful accounts would be would be by because the allowance for |. In addition, the owner's capital account because bad debt expense would be 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement? by On the balance sheet, assets would be doubtful accounts would be would be and net income because the allowance for . In addition, the owner's capital account because bad debt expense would be on the income statement
