need all answeds please Wig Creations Company...

70.2K

Verified Solution

Question

Accounting

need all answeds please
image
image
image
image
Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable derk 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 842,000 467,200 202,100 92,600 31,200 27,800 21,100 The following accounts were unintentionally omitted from the aping schedule: Customer Due Date Balance Arcade Beauty May 28, 2011 $2,700 Creative Images Sept. 7, 2011 5,600 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 3,200 One Stop Hair Designs Dec. 2, 2011 2,000 Visions Hair and Nail Jan 5, 2012 6,800 Wo Creations has a past history of uncollectible accounts by age category, as follows: 600 Age Class Percent Uncollectible Not past due 1 % 1-30 days past due 3 31-60 days past due 10 61-90 days past due 15 91-120 days past due 35 Over 120 days past due 85 Required: 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 days 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 days Ens Hair and Nail Jan 5, 20Y2 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 s not require an entry, leave it blank. Wig Creations Company Aging of Receivables Schedule December 31, 2011 Not Past Days Past Due Days Past Due Days Past Due Days Past Due Customer Balance Days Past Due Due 1-30 31-60 61-90 91-120 Over 120 Subtotals Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images Oh The Hair One Stop Hair Designs Visions Hair and Nail Total Visions Hair and Nail Total 85% 10% 15% bo ofd 35% 0.0 39 1% Percent uncollectible Estimate of uncollectible accounts 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 4. Assume that the allowatice for doubtful accounts for Wig Creations has a credit balance of $1,830 before adjustment on December 31, 20Y1. 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 by because the allowance for doubtful accounts would be by In addition, the owner's capital account would be by because bad debt expense would be and net income by on the income statement

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students