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 d3bdd80a204707d_1 days Creative Images Sept. 7, 20Y1 fill in the blank d3bdd80a204707d_2 days Excel Hair Products Oct. 17, 20Y1 fill in the blank d3bdd80a204707d_3 days First Class Hair Care Oct. 24, 20Y1 fill in the blank d3bdd80a204707d_4 days Golden Images Nov. 23, 20Y1 fill in the blank d3bdd80a204707d_5 days Oh The Hair Nov. 29, 20Y1 fill in the blank d3bdd80a204707d_6 days One Stop Hair Designs Dec. 2, 20Y1 fill in the blank d3bdd80a204707d_7 days Visions Hair and Nail Jan. 5, 20Y2 fill in the blank d3bdd80a204707d_8 days Feedback Area Feedback Count the number of days after the due date up to December 31. Do not include the due date in your count. Remember that not all months have an equal number of days. Add the accounts into the aging schedule based on their number of days past due. Apply the respective uncollectible percentage to the total receivables in each days past due group and the not past due group. The amount of bad debt expense is affected by the balance in the allowance account. Consider the effects of a contra asset not being recorded in terms of the balance sheet equation. Consider the effects of an expense not being reported in terms of the income equation. 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
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The
| Days Past Due | ||||||
| Balance | Not Past Due | 1-30 | 31-60 | 61-90 | 91-120 | over 120 |
| 798,100 | 443,000 | 191,500 | 87,800 | 29,500 | 26,300 | 20,000 |
The following accounts were unintentionally omitted from the aging schedule:
| Customer | Due Date | Balance | ||
|---|---|---|---|---|
| Arcade Beauty | May 28, 20Y1 | $3,200 | ||
| Creative Images | Sept. 7, 20Y1 | 6,700 | ||
| 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 | 3,900 | ||
| One Stop Hair Designs | Dec. 2, 20Y1 | 2,500 | ||
| Visions Hair and Nail | Jan. 5, 20Y2 | 8,200 |
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 | 10 | |
| 61-90 days past due | 15 | |
| 91-120 days past due | 35 | |
| 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 d3bdd80a204707d_1 days |
| Creative Images | Sept. 7, 20Y1 | fill in the blank d3bdd80a204707d_2 days |
| Excel Hair Products | Oct. 17, 20Y1 | fill in the blank d3bdd80a204707d_3 days |
| First Class Hair Care | Oct. 24, 20Y1 | fill in the blank d3bdd80a204707d_4 days |
| Golden Images | Nov. 23, 20Y1 | fill in the blank d3bdd80a204707d_5 days |
| Oh The Hair | Nov. 29, 20Y1 | fill in the blank d3bdd80a204707d_6 days |
| One Stop Hair Designs | Dec. 2, 20Y1 | fill in the blank d3bdd80a204707d_7 days |
| Visions Hair and Nail | Jan. 5, 20Y2 | fill in the blank d3bdd80a204707d_8 days |
Feedback Area
Count the number of days after the due date up to December 31. Do not include the due date in your count. Remember that not all months have an equal number of days.
Add the accounts into the aging schedule based on their number of days past due.
Apply the respective uncollectible percentage to the total receivables in each days past due group and the not past due group.
The amount of
Consider the effects of a contra asset not being recorded in terms of the balance sheet equation.
Consider the effects of an expense not being reported in terms of the income equation.
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.
| 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 2fe28afaeff8fce_1 | fill in the blank 2fe28afaeff8fce_2 | fill in the blank 2fe28afaeff8fce_3 | fill in the blank 2fe28afaeff8fce_4 | fill in the blank 2fe28afaeff8fce_5 | fill in the blank 2fe28afaeff8fce_6 | fill in the blank 2fe28afaeff8fce_7 |
| Arcade Beauty | fill in the blank 2fe28afaeff8fce_8 | fill in the blank 2fe28afaeff8fce_9 | fill in the blank 2fe28afaeff8fce_10 | fill in the blank 2fe28afaeff8fce_11 | fill in the blank 2fe28afaeff8fce_12 | fill in the blank 2fe28afaeff8fce_13 | fill in the blank 2fe28afaeff8fce_14 |
| Creative Images | fill in the blank 2fe28afaeff8fce_15 | fill in the blank 2fe28afaeff8fce_16 | fill in the blank 2fe28afaeff8fce_17 | fill in the blank 2fe28afaeff8fce_18 | fill in the blank 2fe28afaeff8fce_19 | fill in the blank 2fe28afaeff8fce_20 | fill in the blank 2fe28afaeff8fce_21 |
| Excel Hair Products | fill in the blank 2fe28afaeff8fce_22 | fill in the blank 2fe28afaeff8fce_23 | fill in the blank 2fe28afaeff8fce_24 | fill in the blank 2fe28afaeff8fce_25 | fill in the blank 2fe28afaeff8fce_26 | fill in the blank 2fe28afaeff8fce_27 | fill in the blank 2fe28afaeff8fce_28 |
| First Class Hair Care | fill in the blank 2fe28afaeff8fce_29 | fill in the blank 2fe28afaeff8fce_30 | fill in the blank 2fe28afaeff8fce_31 | fill in the blank 2fe28afaeff8fce_32 | fill in the blank 2fe28afaeff8fce_33 | fill in the blank 2fe28afaeff8fce_34 | fill in the blank 2fe28afaeff8fce_35 |
| Golden Images | fill in the blank 2fe28afaeff8fce_36 | fill in the blank 2fe28afaeff8fce_37 | fill in the blank 2fe28afaeff8fce_38 | fill in the blank 2fe28afaeff8fce_39 | fill in the blank 2fe28afaeff8fce_40 | fill in the blank 2fe28afaeff8fce_41 | fill in the blank 2fe28afaeff8fce_42 |
| Oh The Hair | fill in the blank 2fe28afaeff8fce_48 | fill in the blank 2fe28afaeff8fce_49 | |||||
| One Stop Hair Designs | fill in the blank 2fe28afaeff8fce_55 | fill in the blank 2fe28afaeff8fce_56 | |||||
| Visions Hair and Nail | fill in the blank 2fe28afaeff8fce_62 | fill in the blank 2fe28afaeff8fce_63 | |||||
| Totals | fill in the blank 2fe28afaeff8fce_69 | fill in the blank 2fe28afaeff8fce_70 | |||||
| Percent uncollectible (%) | blank | 1% | 3% | 10% | 15% | 35% | 85% |
| Estimate of uncollectible accounts |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
