PR 9-2A Wigs Plus Company supplies wigs and hair care products to beauty salons throughout California and the Pacific Northwest. The accounts receivable clerk for Wigs Plus prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2009: Customer Balance Not Past Due 1-30 31-60 61-90 91-120 Over 120 Alpha Beauty 20,000 20,000Blonde Wigs 11,000 11,000Zahns Beauty 2,900 2,900Subtotals 900,000 498,600 217,250 98,750 33,300 29,950 22,150 The following accounts were unintentionally omitted from the aging schedule: Customer Due Date BalanceSun Coast Beauty May 30, 2009 $ 2850Paradise Beauty Store Sept 15, 2009 6050Helix Hair Products Oct 17, 2009 800Hairys Hair Care Oct 20, 2009 2000Surf Images Nov 18, 2009 700Oh The Hair Nov 29, 2009 3500Mountain Coatings Dec 1, 2009 2250Lasting Images Jan 9, 2010 7400 Wigs Plus has a past history of uncollectible accounts by age category, as follows: Age Class Percent UncollectibleNot Past Due 2%1-30 Days past due 431-60 days past due 1061-90 days past due 1591-120 days past due 35Over 120 days 80 Instructions: 1. Determine the number of days past due for each of the preceding accounts.2. Complete the aging of receivables schedule3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.4. Assume that the allowance for doubtful accounts for Wigs Plus has a credit balance of $1,710 before adjustment on December 31, 2009. Journalize the adjustment for uncollectible account.
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