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, 20Y7: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 ABC Beauty 20,100 20,100 Angel Wigs 7,800 7,800 Zodiac Beauty 4,300 4,300 Subtotals 1,325,700 746,000 298,800 129,500 43,700 22,700 85,000 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nail, which is due in the next year. Customer Due Date Balance Arcade Beauty Aug. 17 $5,300 Creative Images Oct. 30 4,600 Excel Hair Products July 3 8,300 First Class Hair Care Sept. 8 6,600 Golden Images Nov. 23 3,500 Oh That Hair Nov. 29 1,900 One Stop Hair Designs Dec. 7 6,500 Visions Hair & Nail Jan. 11 4,900 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 8 61-90 days past due 32 91-120 days past due 42 Over 120 days past due 84 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 Aug. 17 fill in the blank 910f5cf3605d011_1 days Creative Images Oct. 30 fill in the blank 910f5cf3605d011_2 days Excel Hair Products July 3 fill in the blank 910f5cf3605d011_3 days First Class Hair Care Sept. 8 fill in the blank 910f5cf3605d011_4 days Golden Images Nov. 23 fill in the blank 910f5cf3605d011_5 days Oh That Hair Nov. 29 fill in the blank 910f5cf3605d011_6 days One Stop Hair Designs Dec. 7 fill in the blank 910f5cf3605d011_7 days Visions Hair & Nail Jan. 11 fill in the blank 910f5cf3605d011_8 days 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. (Image 1) 2nd image has other questions
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
| Not | Days Past Due | |||||||||||||
| Past | ||||||||||||||
| Customer | Balance | Due | 1-30 | 31-60 | 61-90 | 91-120 | Over 120 | |||||||
| ABC Beauty | 20,100 | 20,100 | ||||||||||||
| Angel Wigs | 7,800 | 7,800 | ||||||||||||
| Zodiac Beauty | 4,300 | 4,300 | ||||||||||||
| Subtotals | 1,325,700 | 746,000 | 298,800 | 129,500 | 43,700 | 22,700 | 85,000 |
The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nail, which is due in the next year.
| Customer | Due Date | Balance | ||
| Arcade Beauty | Aug. 17 | $5,300 | ||
| Creative Images | Oct. 30 | 4,600 | ||
| Excel Hair Products | July 3 | 8,300 | ||
| First Class Hair Care | Sept. 8 | 6,600 | ||
| Golden Images | Nov. 23 | 3,500 | ||
| Oh That Hair | Nov. 29 | 1,900 | ||
| One Stop Hair Designs | Dec. 7 | 6,500 | ||
| Visions Hair & Nail | Jan. 11 | 4,900 |
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 | 8 | |
| 61-90 days past due | 32 | |
| 91-120 days past due | 42 | |
| Over 120 days past due | 84 |
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 | Aug. 17 | fill in the blank 910f5cf3605d011_1 days |
| Creative Images | Oct. 30 | fill in the blank 910f5cf3605d011_2 days |
| Excel Hair Products | July 3 | fill in the blank 910f5cf3605d011_3 days |
| First Class Hair Care | Sept. 8 | fill in the blank 910f5cf3605d011_4 days |
| Golden Images | Nov. 23 | fill in the blank 910f5cf3605d011_5 days |
| Oh That Hair | Nov. 29 | fill in the blank 910f5cf3605d011_6 days |
| One Stop Hair Designs | Dec. 7 | fill in the blank 910f5cf3605d011_7 days |
| Visions Hair & Nail | Jan. 11 | fill in the blank 910f5cf3605d011_8 days |
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. (Image 1)
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