Financial and Managerial Accounting: PR9-2A Wigs Plus Company supplies wigs and hair care

Financial and Managerial Accounting 
PR9-2A Aging of receivables; estimating allowance for doubtful accounts 
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 20,000 
Blonde Wigs 11,000 11,000 

Zahn's Beauty 2,900 2,900 
Subtotals 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 Balance 
Sun Coast Beauty May 30, 2009 2,850 
Paradise Beauty Store Sep 15, 2009 6,050 
Helix Hair Products Oct 17, 2009 800 
Hairy's Hair Care Oct 20, 2009 2,000 
Surf Images Nov 18, 2009 700 
Oh The Hair Nov 29, 2009 3,500 
Mountain Coatings Dec 1, 2009 2,250 
Lasting Images Jan 9, 2010 7,400 

Wigs Plus has a past history of uncollectible accounts by age category, as follows: 
Ages Class Percent Uncollectibles 
Not Past Due 2% 
1-30 days past due 4% 
31-60 days past due 10% 
61-90 days past due 15% 
91-120 days past due 35% 
Over 120 days past due 80% 

1. Determine the number of days past due for each of the preceding accounts. If an account is not past due, enter a zero. 
2. Complete the aging of receivables schedule. Enter a zero in any box that should be blank. 
3. 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 accounts.
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