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 f8971cfe306afa1_1 fill in the blank f8971cfe306afa1_2 fill in the blank f8971cfe306afa1_3 fill in the blank f8971cfe306afa1_4 fill in the blank f8971cfe306afa1_5 fill in the blank f8971cfe306afa1_6 fill in the blank f8971cfe306afa1_7 Arcade Beauty fill in the blank f8971cfe306afa1_8 fill in the blank f8971cfe306afa1_9 fill in the blank f8971cfe306afa1_10 fill in the blank f8971cfe306afa1_11 fill in the blank f8971cfe306afa1_12 fill in the blank f8971cfe306afa1_13 fill in the blank f8971cfe306afa1_14 Creative Images fill in the blank f8971cfe306afa1_15 fill in the blank f8971cfe306afa1_16 fill in the blank f8971cfe306afa1_17 fill in the blank f8971cfe306afa1_18 fill in the blank f8971cfe306afa1_19 fill in the blank f8971cfe306afa1_20 fill in the blank f8971cfe306afa1_21 Excel Hair Products fill in the blank f8971cfe306afa1_22 fill in the blank f8971cfe306afa1_23 fill in the blank f8971cfe306afa1_24 fill in the blank f8971cfe306afa1_25 fill in the blank f8971cfe306afa1_26 fill in the blank f8971cfe306afa1_27 fill in the blank f8971cfe306afa1_28 First Class Hair Care fill in the blank f8971cfe306afa1_29 fill in the blank f8971cfe306afa1_30 fill in the blank f8971cfe306afa1_31 fill in the blank f8971cfe306afa1_32 fill in the blank f8971cfe306afa1_33 fill in the blank f8971cfe306afa1_34 fill in the blank f8971cfe306afa1_35 Golden Images fill in the blank f8971cfe306afa1_36 fill in the blank f8971cfe306afa1_37 fill in the blank f8971cfe306afa1_38 fill in the blank f8971cfe306afa1_39 fill in the blank f8971cfe306afa1_40 fill in the blank f8971cfe306afa1_41 fill in the blank f8971cfe306afa1_42 Oh That Hair fill in the blank f8971cfe306afa1_43 fill in the blank f8971cfe306afa1_44 fill in the blank f8971cfe306afa1_45 fill in the blank f8971cfe306afa1_46 fill in the blank f8971cfe306afa1_47 fill in the blank f8971cfe306afa1_48 fill in the blank f8971cfe306afa1_49 One Stop Hair Designs fill in the blank f8971cfe306afa1_50 fill in the blank f8971cfe306afa1_51 fill in the blank f8971cfe306afa1_52 fill in the blank f8971cfe306afa1_53 fill in the blank f8971cfe306afa1_54 fill in the blank f8971cfe306afa1_55 fill in the blank f8971cfe306afa1_56 Visions Hair & Nail fill in the blank f8971cfe306afa1_57 fill in the blank f8971cfe306afa1_58 fill in the blank f8971cfe306afa1_59 fill in the blank f8971cfe306afa1_60 fill in the blank f8971cfe306afa1_61 fill in the blank f8971cfe306afa1_62 fill in the blank f8971cfe306afa1_63 Total fill in the blank f8971cfe306afa1_64 fill in the blank f8971cfe306afa1_65 fill in the blank f8971cfe306afa1_66 fill in the blank f8971cfe306afa1_67 fill in the blank f8971cfe306afa1_68 fill in the blank f8971cfe306afa1_69 fill in the blank f8971cfe306afa1_70 Percent uncollectible blank 1% 3% 10% 15% 35% 85% Estimate of uncollectible accounts fill in the blank f8971cfe306afa1_71 fill in the blank f8971cfe306afa1_72 fill in the blank f8971cfe306afa1_73 fill in the blank f8971cfe306afa1_74 fill in the blank f8971cfe306afa1_75 fill in the blank f8971cfe306afa1_76 fill in the blank f8971cfe306afa1_77 Question Content Area 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $fill in the blank 45fae6f8bfcb036_1 Question Content Area 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $1,870 before adjustment on December 31, 20Y1. Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area 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.

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 f8971cfe306afa1_1 fill in the blank f8971cfe306afa1_2 fill in the blank f8971cfe306afa1_3 fill in the blank f8971cfe306afa1_4 fill in the blank f8971cfe306afa1_5 fill in the blank f8971cfe306afa1_6 fill in the blank f8971cfe306afa1_7 Arcade Beauty fill in the blank f8971cfe306afa1_8 fill in the blank f8971cfe306afa1_9 fill in the blank f8971cfe306afa1_10 fill in the blank f8971cfe306afa1_11 fill in the blank f8971cfe306afa1_12 fill in the blank f8971cfe306afa1_13 fill in the blank f8971cfe306afa1_14 Creative Images fill in the blank f8971cfe306afa1_15 fill in the blank f8971cfe306afa1_16 fill in the blank f8971cfe306afa1_17 fill in the blank f8971cfe306afa1_18 fill in the blank f8971cfe306afa1_19 fill in the blank f8971cfe306afa1_20 fill in the blank f8971cfe306afa1_21 Excel Hair Products fill in the blank f8971cfe306afa1_22 fill in the blank f8971cfe306afa1_23 fill in the blank f8971cfe306afa1_24 fill in the blank f8971cfe306afa1_25 fill in the blank f8971cfe306afa1_26 fill in the blank f8971cfe306afa1_27 fill in the blank f8971cfe306afa1_28 First Class Hair Care fill in the blank f8971cfe306afa1_29 fill in the blank f8971cfe306afa1_30 fill in the blank f8971cfe306afa1_31 fill in the blank f8971cfe306afa1_32 fill in the blank f8971cfe306afa1_33 fill in the blank f8971cfe306afa1_34 fill in the blank f8971cfe306afa1_35 Golden Images fill in the blank f8971cfe306afa1_36 fill in the blank f8971cfe306afa1_37 fill in the blank f8971cfe306afa1_38 fill in the blank f8971cfe306afa1_39 fill in the blank f8971cfe306afa1_40 fill in the blank f8971cfe306afa1_41 fill in the blank f8971cfe306afa1_42 Oh That Hair fill in the blank f8971cfe306afa1_43 fill in the blank f8971cfe306afa1_44 fill in the blank f8971cfe306afa1_45 fill in the blank f8971cfe306afa1_46 fill in the blank f8971cfe306afa1_47 fill in the blank f8971cfe306afa1_48 fill in the blank f8971cfe306afa1_49 One Stop Hair Designs fill in the blank f8971cfe306afa1_50 fill in the blank f8971cfe306afa1_51 fill in the blank f8971cfe306afa1_52 fill in the blank f8971cfe306afa1_53 fill in the blank f8971cfe306afa1_54 fill in the blank f8971cfe306afa1_55 fill in the blank f8971cfe306afa1_56 Visions Hair & Nail fill in the blank f8971cfe306afa1_57 fill in the blank f8971cfe306afa1_58 fill in the blank f8971cfe306afa1_59 fill in the blank f8971cfe306afa1_60 fill in the blank f8971cfe306afa1_61 fill in the blank f8971cfe306afa1_62 fill in the blank f8971cfe306afa1_63 Total fill in the blank f8971cfe306afa1_64 fill in the blank f8971cfe306afa1_65 fill in the blank f8971cfe306afa1_66 fill in the blank f8971cfe306afa1_67 fill in the blank f8971cfe306afa1_68 fill in the blank f8971cfe306afa1_69 fill in the blank f8971cfe306afa1_70 Percent uncollectible blank 1% 3% 10% 15% 35% 85% Estimate of uncollectible accounts fill in the blank f8971cfe306afa1_71 fill in the blank f8971cfe306afa1_72 fill in the blank f8971cfe306afa1_73 fill in the blank f8971cfe306afa1_74 fill in the blank f8971cfe306afa1_75 fill in the blank f8971cfe306afa1_76 fill in the blank f8971cfe306afa1_77 Question Content Area 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. $fill in the blank 45fae6f8bfcb036_1 Question Content Area 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $1,870 before adjustment on December 31, 20Y1. Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area 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.

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

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 f8971cfe306afa1_1	fill in the blank f8971cfe306afa1_2	fill in the blank f8971cfe306afa1_3	fill in the blank f8971cfe306afa1_4	fill in the blank f8971cfe306afa1_5	fill in the blank f8971cfe306afa1_6	fill in the blank f8971cfe306afa1_7
Arcade Beauty	fill in the blank f8971cfe306afa1_8	fill in the blank f8971cfe306afa1_9	fill in the blank f8971cfe306afa1_10	fill in the blank f8971cfe306afa1_11	fill in the blank f8971cfe306afa1_12	fill in the blank f8971cfe306afa1_13	fill in the blank f8971cfe306afa1_14
Creative Images	fill in the blank f8971cfe306afa1_15	fill in the blank f8971cfe306afa1_16	fill in the blank f8971cfe306afa1_17	fill in the blank f8971cfe306afa1_18	fill in the blank f8971cfe306afa1_19	fill in the blank f8971cfe306afa1_20	fill in the blank f8971cfe306afa1_21
Excel Hair Products	fill in the blank f8971cfe306afa1_22	fill in the blank f8971cfe306afa1_23	fill in the blank f8971cfe306afa1_24	fill in the blank f8971cfe306afa1_25	fill in the blank f8971cfe306afa1_26	fill in the blank f8971cfe306afa1_27	fill in the blank f8971cfe306afa1_28
First Class Hair Care	fill in the blank f8971cfe306afa1_29	fill in the blank f8971cfe306afa1_30	fill in the blank f8971cfe306afa1_31	fill in the blank f8971cfe306afa1_32	fill in the blank f8971cfe306afa1_33	fill in the blank f8971cfe306afa1_34	fill in the blank f8971cfe306afa1_35
Golden Images	fill in the blank f8971cfe306afa1_36	fill in the blank f8971cfe306afa1_37	fill in the blank f8971cfe306afa1_38	fill in the blank f8971cfe306afa1_39	fill in the blank f8971cfe306afa1_40	fill in the blank f8971cfe306afa1_41	fill in the blank f8971cfe306afa1_42
Oh That Hair	fill in the blank f8971cfe306afa1_43	fill in the blank f8971cfe306afa1_44	fill in the blank f8971cfe306afa1_45	fill in the blank f8971cfe306afa1_46	fill in the blank f8971cfe306afa1_47	fill in the blank f8971cfe306afa1_48	fill in the blank f8971cfe306afa1_49
One Stop Hair Designs	fill in the blank f8971cfe306afa1_50	fill in the blank f8971cfe306afa1_51	fill in the blank f8971cfe306afa1_52	fill in the blank f8971cfe306afa1_53	fill in the blank f8971cfe306afa1_54	fill in the blank f8971cfe306afa1_55	fill in the blank f8971cfe306afa1_56
Visions Hair & Nail	fill in the blank f8971cfe306afa1_57	fill in the blank f8971cfe306afa1_58	fill in the blank f8971cfe306afa1_59	fill in the blank f8971cfe306afa1_60	fill in the blank f8971cfe306afa1_61	fill in the blank f8971cfe306afa1_62	fill in the blank f8971cfe306afa1_63
Total	fill in the blank f8971cfe306afa1_64	fill in the blank f8971cfe306afa1_65	fill in the blank f8971cfe306afa1_66	fill in the blank f8971cfe306afa1_67	fill in the blank f8971cfe306afa1_68	fill in the blank f8971cfe306afa1_69	fill in the blank f8971cfe306afa1_70
Percent uncollectible	blank	1%	3%	10%	15%	35%	85%
Estimate of uncollectible accounts	fill in the blank f8971cfe306afa1_71	fill in the blank f8971cfe306afa1_72	fill in the blank f8971cfe306afa1_73	fill in the blank f8971cfe306afa1_74	fill in the blank f8971cfe306afa1_75	fill in the blank f8971cfe306afa1_76	fill in the blank f8971cfe306afa1_77

Question Content Area

3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.
$fill in the blank 45fae6f8bfcb036_1

Question Content Area

4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $1,870 before adjustment on December 31, 20Y1. Journalize the adjustment for uncollectible accounts. If an amount box does not require an entry, leave it blank.

blank		- Select -	- Select -
		- Select -	- Select -

Question Content Area

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

because the allowance for doubtful accounts would be

. In addition, the owner’s capital account would be

because bad debt expense would be

and net income

on the income statement.

Age
Class
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:
Customer
Arcade Beauty
Creative Images
Excel Hair Products
First Class Hair Care
1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero.
Due Date
Number of Days Past Due
days
days
days
days
days.
days
days
days
Golden Images
Oh That Hair
Uncollectible
One Stop Hair Designs
Visions Hair & Nail
1 %
3
10
15
35
85
May 28, 20Y1
Sept. 7, 20Y1
Oct. 17, 20Y1
Oct. 24, 20Y1
Nov. 23, 20Y1
Nov. 29, 20Y1
Dec. 2, 20Y1
Jan. 5, 20Y2

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
61-90
25,900
Customer Balance Not Past Due
Subtotals
699,400
388,100
The following accounts were unintentionally omitted from the aging schedule:
Customer
Arcade Beauty
Creative Images
Excel Hair Products
First Class Hair Care
Golden Images
Oh That Hair
1-30
One Stop Hair Designs
Visions Hair & Nail
167,900
31-60
76,900
Due Date
May 28, 20Y1
Sept. 7, 20Y1
Oct. 17, 20Y1
Oct. 24, 20Y1
Nov. 23, 20Y1
Nov. 29, 20Y1
3,700
Dec. 2, 20Y1
2,300
Jan. 5, 20Y2
7,800
Wig Creations has a past history of uncollectible accounts by age category, as follows:
Balance
$3,000
6,400
900
2,100
700
91-120
23,100
Over 120
17,500

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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