December 31, 20Y1 Customer Balance Not Past Due Days Past Days Past Due 1-30 Due 31-60 Days Past Days Past Due 61-90 Due 91-120 Days Past Due 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 Percent uncollectible Estimate of uncollectible accounts 1% 3% 10% 15% 35% 75% 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 $1,840 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 for doubtful accounts would be account would be by by by and net income by because the allowance In addition, the owner's capital because bad debt expense would be on the income statement. 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 847,600 470,400 203,400 93,200 31,400 28,000 21,200 The following accounts were unintentionally omitted from the aging schedule: Customer Arcade Beauty Due Date Balance May 28, 20Y1 $3,200 eative Images Sept. 7, 20Y1 6,600 Excel Hair Products Oct. 17, 20Y1 900 First Class Hair Care Oct. 24, 20Y1 2,200 Golden Images Nov. 23, 20Y1 700 Oh The Hair Nov. 29, 20Y1 3,800 One Stop Hair Designs Dec. 2, 20Y1 2,400 Jan. 5, 20Y2 8,100 Visions Hair and Nail Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Age Class 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 75 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 Arcade Beauty Due Date Number of Days Past Due May 28, 20Y1 days Creative Images Sent 7 201 days

December 31, 20Y1 Customer Balance Not Past Due Days Past Days Past Due 1-30 Due 31-60 Days Past Days Past Due 61-90 Due 91-120 Days Past Due 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 Percent uncollectible Estimate of uncollectible accounts 1% 3% 10% 15% 35% 75% 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 $1,840 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 for doubtful accounts would be account would be by by by and net income by because the allowance In addition, the owner's capital because bad debt expense would be on the income statement. 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 847,600 470,400 203,400 93,200 31,400 28,000 21,200 The following accounts were unintentionally omitted from the aging schedule: Customer Arcade Beauty Due Date Balance May 28, 20Y1 $3,200 eative Images Sept. 7, 20Y1 6,600 Excel Hair Products Oct. 17, 20Y1 900 First Class Hair Care Oct. 24, 20Y1 2,200 Golden Images Nov. 23, 20Y1 700 Oh The Hair Nov. 29, 20Y1 3,800 One Stop Hair Designs Dec. 2, 20Y1 2,400 Jan. 5, 20Y2 8,100 Visions Hair and Nail Wig Creations has a past history of uncollectible accounts by age category, as follows: Percent Age Class 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 75 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 Arcade Beauty Due Date Number of Days Past Due May 28, 20Y1 days Creative Images Sent 7 201 days

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 25E: Refer to Exercise 8.24. Del Spencers purchases clothing evenly throughout the month. All purchases...

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