Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 9, Problem 2PB
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:
The following accounts were unintentionally omitted from the aging schedule:
Wig Creations has a past history of uncollectible accounts by age category, as follows:
Instructions
- 1. Determine the number of days past due for each of the preceding accounts.
- 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
- 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 $7,375 before adjustment on December 31, 20Y1. Journalize the adjustment for uncollectible accounts.
- 5. Assuming that the
adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?
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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
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…
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
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…
Averys All-Natural Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Averys All-Natural prepared the following aging-of-receivables schedule as of the end of business on December 31, 20Y7:
Days Past Due
Customer
Balance
Not PastDue
1–30
31–60
61–90
91–120
Over 120
AAA Beauty
27,500
27,500
Amelia's Wigs
3,750
3,750
Zim's Beauty
1,650
1,650
Totals
1,100,000
750,000
180,000
75,000
45,000
22,000
28,000
Averys All-Natural Company has a past history of uncollectible accounts by age category, as follows:
Age Class
PercentUncollectible
Not past due
1
%
1–30 days past due
3
31–60 days past due
7
61–90 days past due
16
91–120 days past due
40
Over 120 days past due
90
Instructions:
1. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule.fill in the blank 1
2. Assume…
Chapter 9 Solutions
Financial Accounting
Ch. 9 - What are the three classifications of receivables?Ch. 9 - Dans Hardware is a small hardware store in the...Ch. 9 - What kind of an account (asset, liability, etc.)...Ch. 9 - After the accounts are adjusted and closed at the...Ch. 9 - A firm has consistently adjusted its allowance...Ch. 9 - Which of the two methods of estimating...Ch. 9 - Neptune Company issued a note receivable to...Ch. 9 - If a note provides for payment of principal of...Ch. 9 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 9 - The note receivable dishonored in Discussion...
Ch. 9 - Journalize the following transactions, using the...Ch. 9 - Journalize the following transactions, using the...Ch. 9 - Journalize the following transactions, using the...Ch. 9 - Journalize the following transactions, using the...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - Lundquist Company received a 60-day, 9% note for...Ch. 9 - Prefix Supply Company received a 120-day, 8% note...Ch. 9 - Financial statement data for years ending December...Ch. 9 - Financial statement data for years ending December...Ch. 9 - Prob. 1ECh. 9 - MGM Resorts International owns and operates hotels...Ch. 9 - Journalize the following transactions in the...Ch. 9 - Journalize the following transactions in the...Ch. 9 - Quantum Solutions Company, a computer consulting...Ch. 9 - At the end of the current year, the accounts...Ch. 9 - Toot Auto Supply distributes new and used...Ch. 9 - The accounts receivable clerk for Kirchhoff...Ch. 9 - Kirchhoff Industries has a past history of...Ch. 9 - Using data in Exercise 9-9, assume that the...Ch. 9 - Performance Bike Co. is a wholesaler of motorcycle...Ch. 9 - Using the data in Exercise 9-11, assume that the...Ch. 9 - The following selected transactions were taken...Ch. 9 - The following selected transactions were taken...Ch. 9 - Prob. 15ECh. 9 - Using the data in Exercise 9-15, assume that...Ch. 9 - Casebolt Company wrote off the following accounts...Ch. 9 - Seaforth International wrote off the following...Ch. 9 - Determine the due date and the amount of interest...Ch. 9 - Spring Designs Decorators issued a 120-day, 4%...Ch. 9 - The series of five transactions recorded in the...Ch. 9 - The following selected transactions were completed...Ch. 9 - Journalize the following transactions of Trapper...Ch. 9 - Journalize the following transactions in the...Ch. 9 - List any errors you can find in the following...Ch. 9 - Ralph Lauren Corporation designs, markets, and...Ch. 9 - The Campbell Soup Company manufactures and markets...Ch. 9 - Prob. 28ECh. 9 - Prob. 29ECh. 9 - The following transactions were completed by Daws...Ch. 9 - Trophy Fish Company supplies flies and fishing...Ch. 9 - Call Systems Company, a telephone service and...Ch. 9 - Flush Mate Co. wholesales bathroom fixtures....Ch. 9 - The following data relate to notes receivable and...Ch. 9 - Prob. 6PACh. 9 - The following transactions were completed by The...Ch. 9 - Wig Creations Company supplies wigs and hair care...Ch. 9 - Prob. 3PBCh. 9 - Gen-X Ads Co. produces advertising videos. During...Ch. 9 - The following data relate to notes receivable and...Ch. 9 - Prob. 6PBCh. 9 - Bud Lighting Co. is a retailer of commercial and...Ch. 9 - Prob. 2CPCh. 9 - Prob. 4CPCh. 9 - For several years, Xtreme Co.s sales have been on...Ch. 9 - Best Buy is a specialty retailer of consumer...Ch. 9 - Apple Inc. designs, manufactures, and markets...Ch. 9 - Prob. 8CP
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