Looks Good Wigs Company supplies wigs and hair care products to beauty salons throughout California and the Pacific Northwest. The accounts receivable clerk for Looks Good prepared the following partially completed aging-of-receivables schedule as of the end of business on December 31, 2007:

The following accounts were unintentionally omitted from the aging schedule:

Looks Good Wigs has a past history of uncollectible accounts by age category, as follows:
Percent
Age Class Uncollectible
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

Instructions
1. Determine the number of days past due for each of the preceding accounts.
2. Complete the aging-of-receivables schedule.
3. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule.
4. Assume that the allowance for doubtful accounts for Looks Good Wigs has a credit balance of $9,550 before adjustment on December 31, 2007. Journalize the adjustment for uncollectibleaccounts.

Transcribed Image Text:

Not Past Days Past Due Customer Balance Due 1-30 31-6061-90 91-120 Over 120 1Daytime Beauty 2 Blount Wigs 20.000 20.000 11,000 11,000 2,900 30 Zabka's 31 Subtotals 780,000 398,600 197,25098,750 33,300 29,950 22,150 31 2,900 301 Customer Due Date Balance Uniquely Yours Paradise Beauty Store Morgan's Hair Products Hairy's Hair Care Superior Images Oh The Hair Mountain Coatings Theatrical Images July 1, 2007 Sept. 29, 2007 Oct. 17, 2007 Oct. 31, 2007 Nov. 18, 2007 Nov. 30, 2007 Dec. 1, 2007 Jan. 3, 2008 $1,200 1,050 800 2,000 700 3,500 1,000 6,200