Aging of Receivables; Estimating Allowance for Doubtful Accounts 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 Due Customer Balance Not Past Due 1-30 31-60 61-90 91-120 Over 120 Subtotals 577,500 320,500 138,600 63,500 21,400 19,100 14,400 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 20Y1 $2,700 Creative Images Sept. 7, 20Y1 5,700 Excel Hair Products Oct. 17, 20Y1 800 First Class Hair Care Oct. 24, 20Y1 1,900 Golden Images Nov. 23, 20Y1 600 Oh That Hair Nov. 29, 20Y1 3,200 One Stop Hair Designs Dec. 2, 20Y1 2,100 Visions Hair & Nail Jan. 5, 20Y2 6,900 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 18 91-120 days past due 40 Over 120 days past due 85 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 May 28, 20Y1 fill in the blank d098f7fc5065066_1 days Creative Images Sept. 7, 20Y1 fill in the blank d098f7fc5065066_2 days Excel Hair Products Oct. 17, 20Y1 fill in the blank d098f7fc5065066_3 days First Class Hair Care Oct. 24, 20Y1 fill in the blank d098f7fc5065066_4 days Golden Images Nov. 23, 20Y1 fill in the blank d098f7fc5065066_5 days Oh That Hair Nov. 29, 20Y1 fill in the blank d098f7fc5065066_6 days One Stop Hair Designs Dec. 2, 20Y1 fill in the blank d098f7fc5065066_7 days Visions Hair & Nail Jan. 5, 20Y2 fill in the blank d098f7fc5065066_8 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 CompanyAging of Receivables ScheduleDecember 31, 20Y1 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 fill in the blank 6c0dc3fe6004f91_1 fill in the blank 6c0dc3fe6004f91_2 fill in the blank 6c0dc3fe6004f91_3 fill in the blank 6c0dc3fe6004f91_4 fill in the blank 6c0dc3fe6004f91_5 fill in the blank 6c0dc3fe6004f91_6 fill in the blank 6c0dc3fe6004f91_7 Arcade Beauty fill in the blank 6c0dc3fe6004f91_8 fill in the blank 6c0dc3fe6004f91_9 fill in the blank 6c0dc3fe6004f91_10 fill in the blank 6c0dc3fe6004f91_11 fill in the blank 6c0dc3fe6004f91_12 fill in the blank 6c0dc3fe6004f91_13 fill in the blank 6c0dc3fe6004f91_14 Creative Images fill in the blank 6c0dc3fe6004f91_15 fill in the blank 6c0dc3fe6004f91_16 fill in the blank 6c0dc3fe6004f91_17 fill in the blank 6c0dc3fe6004f91_18 fill in the blank 6c0dc3fe6004f91_19 fill in the blank 6c0dc3fe6004f91_20 fill in the blank 6c0dc3fe6004f91_21 Excel Hair Products fill in the blank 6c0dc3fe6004f91_22 fill in the blank 6c0dc3fe6004f91_23 fill in the blank 6c0dc3fe6004f91_24 fill in the blank 6c0dc3fe6004f91_25 fill in the blank 6c0dc3fe6004f91_26 fill in the blank 6c0dc3fe6004f91_27 fill in the blank 6c0dc3fe6004f91_28 First Class Hair Care fill in the blank 6c0dc3fe6004f91_29 fill in the blank 6c0dc3fe6004f91_30 fill in the blank 6c0dc3fe6004f91_31 fill in the blank 6c0dc3fe6004f91_32 fill in the blank 6c0dc3fe6004f91_33 fill in the blank 6c0dc3fe6004f91_34 fill in the blank 6c0dc3fe6004f91_35 Golden Images fill in the blank 6c0dc3fe6004f91_36 fill in the blank 6c0dc3fe6004f91_37 fill in the blank 6c0dc3fe6004f91_38 fill in the blank 6c0dc3fe6004f91_39 fill in the blank 6c0dc3fe6004f91_40 fill in the blank 6c0dc3fe6004f91_41 fill in the blank 6c0dc3fe6004f91_42 Oh That Hair fill in the blank 6c0dc3fe6004f91_43 fill in the blank 6c0dc3fe6004f91_44 fill in the blank 6c0dc3fe6004f91_45 fill in the blank 6c0dc3fe6004f91_46 fill in the blank 6c0dc3fe6004f91_47 fill in the blank 6c0dc3fe6004f91_48 fill in the blank 6c0dc3fe6004f91_49 One Stop Hair Designs fill in the blank 6c0dc3fe6004f91_51 fill in the blank 6c0dc3fe6004f91_52 fill in the blank 6c0dc3fe6004f91_53 fill in the blank 6c0dc3fe6004f91_54 fill in the blank 6c0dc3fe6004f91_55 fill in the blank 6c0dc3fe6004f91_56 Visions Hair & Nail fill in the blank 6c0dc3fe6004f91_59 fill in the blank 6c0dc3fe6004f91_60 fill in the blank 6c0dc3fe6004f91_61 fill in the blank 6c0dc3fe6004f91_62 fill in the blank 6c0dc3fe6004f91_63 Total fill in the blank 6c0dc3fe6004f91_68 fill in the blank 6c0dc3fe6004f91_69 fill in the blank 6c0dc3fe6004f91_70 Percent uncollectible blank 1% 3% 12% 18% 40% 85% Estimate of uncollectible accounts fill in the blank 6c0dc3fe6004f91_71 fill in the blank 6c0dc3fe6004f91_72 fill in the blank 6c0dc3fe6004f91_73 fill in the blank 6c0dc3fe6004f91_74 fill in the blank 6c0dc3fe6004f91_75 fill in the blank 6c0dc3fe6004f91_76 fill in the blank 6c0dc3fe6004f91_77

Aging of Receivables; Estimating Allowance for Doubtful Accounts 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 Due Customer Balance Not Past Due 1-30 31-60 61-90 91-120 Over 120 Subtotals 577,500 320,500 138,600 63,500 21,400 19,100 14,400 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date Balance Arcade Beauty May 28, 20Y1 $2,700 Creative Images Sept. 7, 20Y1 5,700 Excel Hair Products Oct. 17, 20Y1 800 First Class Hair Care Oct. 24, 20Y1 1,900 Golden Images Nov. 23, 20Y1 600 Oh That Hair Nov. 29, 20Y1 3,200 One Stop Hair Designs Dec. 2, 20Y1 2,100 Visions Hair & Nail Jan. 5, 20Y2 6,900 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 18 91-120 days past due 40 Over 120 days past due 85 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 May 28, 20Y1 fill in the blank d098f7fc5065066_1 days Creative Images Sept. 7, 20Y1 fill in the blank d098f7fc5065066_2 days Excel Hair Products Oct. 17, 20Y1 fill in the blank d098f7fc5065066_3 days First Class Hair Care Oct. 24, 20Y1 fill in the blank d098f7fc5065066_4 days Golden Images Nov. 23, 20Y1 fill in the blank d098f7fc5065066_5 days Oh That Hair Nov. 29, 20Y1 fill in the blank d098f7fc5065066_6 days One Stop Hair Designs Dec. 2, 20Y1 fill in the blank d098f7fc5065066_7 days Visions Hair & Nail Jan. 5, 20Y2 fill in the blank d098f7fc5065066_8 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 CompanyAging of Receivables ScheduleDecember 31, 20Y1 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 fill in the blank 6c0dc3fe6004f91_1 fill in the blank 6c0dc3fe6004f91_2 fill in the blank 6c0dc3fe6004f91_3 fill in the blank 6c0dc3fe6004f91_4 fill in the blank 6c0dc3fe6004f91_5 fill in the blank 6c0dc3fe6004f91_6 fill in the blank 6c0dc3fe6004f91_7 Arcade Beauty fill in the blank 6c0dc3fe6004f91_8 fill in the blank 6c0dc3fe6004f91_9 fill in the blank 6c0dc3fe6004f91_10 fill in the blank 6c0dc3fe6004f91_11 fill in the blank 6c0dc3fe6004f91_12 fill in the blank 6c0dc3fe6004f91_13 fill in the blank 6c0dc3fe6004f91_14 Creative Images fill in the blank 6c0dc3fe6004f91_15 fill in the blank 6c0dc3fe6004f91_16 fill in the blank 6c0dc3fe6004f91_17 fill in the blank 6c0dc3fe6004f91_18 fill in the blank 6c0dc3fe6004f91_19 fill in the blank 6c0dc3fe6004f91_20 fill in the blank 6c0dc3fe6004f91_21 Excel Hair Products fill in the blank 6c0dc3fe6004f91_22 fill in the blank 6c0dc3fe6004f91_23 fill in the blank 6c0dc3fe6004f91_24 fill in the blank 6c0dc3fe6004f91_25 fill in the blank 6c0dc3fe6004f91_26 fill in the blank 6c0dc3fe6004f91_27 fill in the blank 6c0dc3fe6004f91_28 First Class Hair Care fill in the blank 6c0dc3fe6004f91_29 fill in the blank 6c0dc3fe6004f91_30 fill in the blank 6c0dc3fe6004f91_31 fill in the blank 6c0dc3fe6004f91_32 fill in the blank 6c0dc3fe6004f91_33 fill in the blank 6c0dc3fe6004f91_34 fill in the blank 6c0dc3fe6004f91_35 Golden Images fill in the blank 6c0dc3fe6004f91_36 fill in the blank 6c0dc3fe6004f91_37 fill in the blank 6c0dc3fe6004f91_38 fill in the blank 6c0dc3fe6004f91_39 fill in the blank 6c0dc3fe6004f91_40 fill in the blank 6c0dc3fe6004f91_41 fill in the blank 6c0dc3fe6004f91_42 Oh That Hair fill in the blank 6c0dc3fe6004f91_43 fill in the blank 6c0dc3fe6004f91_44 fill in the blank 6c0dc3fe6004f91_45 fill in the blank 6c0dc3fe6004f91_46 fill in the blank 6c0dc3fe6004f91_47 fill in the blank 6c0dc3fe6004f91_48 fill in the blank 6c0dc3fe6004f91_49 One Stop Hair Designs fill in the blank 6c0dc3fe6004f91_51 fill in the blank 6c0dc3fe6004f91_52 fill in the blank 6c0dc3fe6004f91_53 fill in the blank 6c0dc3fe6004f91_54 fill in the blank 6c0dc3fe6004f91_55 fill in the blank 6c0dc3fe6004f91_56 Visions Hair & Nail fill in the blank 6c0dc3fe6004f91_59 fill in the blank 6c0dc3fe6004f91_60 fill in the blank 6c0dc3fe6004f91_61 fill in the blank 6c0dc3fe6004f91_62 fill in the blank 6c0dc3fe6004f91_63 Total fill in the blank 6c0dc3fe6004f91_68 fill in the blank 6c0dc3fe6004f91_69 fill in the blank 6c0dc3fe6004f91_70 Percent uncollectible blank 1% 3% 12% 18% 40% 85% Estimate of uncollectible accounts fill in the blank 6c0dc3fe6004f91_71 fill in the blank 6c0dc3fe6004f91_72 fill in the blank 6c0dc3fe6004f91_73 fill in the blank 6c0dc3fe6004f91_74 fill in the blank 6c0dc3fe6004f91_75 fill in the blank 6c0dc3fe6004f91_76 fill in the blank 6c0dc3fe6004f91_77

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	May 28, 20Y1	fill in the blank d098f7fc5065066_1 days
Creative Images	Sept. 7, 20Y1	fill in the blank d098f7fc5065066_2 days
Excel Hair Products	Oct. 17, 20Y1	fill in the blank d098f7fc5065066_3 days
First Class Hair Care	Oct. 24, 20Y1	fill in the blank d098f7fc5065066_4 days
Golden Images	Nov. 23, 20Y1	fill in the blank d098f7fc5065066_5 days
Oh That Hair	Nov. 29, 20Y1	fill in the blank d098f7fc5065066_6 days
One Stop Hair Designs	Dec. 2, 20Y1	fill in the blank d098f7fc5065066_7 days
Visions Hair & Nail	Jan. 5, 20Y2	fill in the blank d098f7fc5065066_8 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 CompanyAging of Receivables ScheduleDecember 31, 20Y1

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	fill in the blank 6c0dc3fe6004f91_1	fill in the blank 6c0dc3fe6004f91_2	fill in the blank 6c0dc3fe6004f91_3	fill in the blank 6c0dc3fe6004f91_4	fill in the blank 6c0dc3fe6004f91_5	fill in the blank 6c0dc3fe6004f91_6	fill in the blank 6c0dc3fe6004f91_7
Arcade Beauty	fill in the blank 6c0dc3fe6004f91_8	fill in the blank 6c0dc3fe6004f91_9	fill in the blank 6c0dc3fe6004f91_10	fill in the blank 6c0dc3fe6004f91_11	fill in the blank 6c0dc3fe6004f91_12	fill in the blank 6c0dc3fe6004f91_13	fill in the blank 6c0dc3fe6004f91_14
Creative Images	fill in the blank 6c0dc3fe6004f91_15	fill in the blank 6c0dc3fe6004f91_16	fill in the blank 6c0dc3fe6004f91_17	fill in the blank 6c0dc3fe6004f91_18	fill in the blank 6c0dc3fe6004f91_19	fill in the blank 6c0dc3fe6004f91_20	fill in the blank 6c0dc3fe6004f91_21
Excel Hair Products	fill in the blank 6c0dc3fe6004f91_22	fill in the blank 6c0dc3fe6004f91_23	fill in the blank 6c0dc3fe6004f91_24	fill in the blank 6c0dc3fe6004f91_25	fill in the blank 6c0dc3fe6004f91_26	fill in the blank 6c0dc3fe6004f91_27	fill in the blank 6c0dc3fe6004f91_28
First Class Hair Care	fill in the blank 6c0dc3fe6004f91_29	fill in the blank 6c0dc3fe6004f91_30	fill in the blank 6c0dc3fe6004f91_31	fill in the blank 6c0dc3fe6004f91_32	fill in the blank 6c0dc3fe6004f91_33	fill in the blank 6c0dc3fe6004f91_34	fill in the blank 6c0dc3fe6004f91_35
Golden Images	fill in the blank 6c0dc3fe6004f91_36	fill in the blank 6c0dc3fe6004f91_37	fill in the blank 6c0dc3fe6004f91_38	fill in the blank 6c0dc3fe6004f91_39	fill in the blank 6c0dc3fe6004f91_40	fill in the blank 6c0dc3fe6004f91_41	fill in the blank 6c0dc3fe6004f91_42
Oh That Hair	fill in the blank 6c0dc3fe6004f91_43	fill in the blank 6c0dc3fe6004f91_44	fill in the blank 6c0dc3fe6004f91_45	fill in the blank 6c0dc3fe6004f91_46	fill in the blank 6c0dc3fe6004f91_47	fill in the blank 6c0dc3fe6004f91_48	fill in the blank 6c0dc3fe6004f91_49
One Stop Hair Designs		fill in the blank 6c0dc3fe6004f91_51	fill in the blank 6c0dc3fe6004f91_52	fill in the blank 6c0dc3fe6004f91_53	fill in the blank 6c0dc3fe6004f91_54	fill in the blank 6c0dc3fe6004f91_55	fill in the blank 6c0dc3fe6004f91_56
Visions Hair & Nail			fill in the blank 6c0dc3fe6004f91_59	fill in the blank 6c0dc3fe6004f91_60	fill in the blank 6c0dc3fe6004f91_61	fill in the blank 6c0dc3fe6004f91_62	fill in the blank 6c0dc3fe6004f91_63
Total					fill in the blank 6c0dc3fe6004f91_68	fill in the blank 6c0dc3fe6004f91_69	fill in the blank 6c0dc3fe6004f91_70
Percent uncollectible	blank	1%	3%	12%	18%	40%	85%
Estimate of uncollectible accounts	fill in the blank 6c0dc3fe6004f91_71	fill in the blank 6c0dc3fe6004f91_72	fill in the blank 6c0dc3fe6004f91_73	fill in the blank 6c0dc3fe6004f91_74	fill in the blank 6c0dc3fe6004f91_75	fill in the blank 6c0dc3fe6004f91_76	fill in the blank 6c0dc3fe6004f91_77

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			Days Past Due
Customer	Balance	Not Past Due	1-30	31-60	61-90	91-120	Over 120
Subtotals	577,500	320,500	138,600	63,500	21,400	19,100	14,400

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	18
91-120 days past due	40
Over 120 days past due	85