Capri Wigs Company supplies wigs and hair care products

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Capri Wigs Company supplies wigs and hair care products to beauty salons throughout
California and the Pacific Northwest. The accounts receivable clerk for Capri Wigs prepared the
following partially completed aging of receivables schedule as of the end of business on
December 31, 2011:The following accounts were unintentionally omitted from the aging
schedule:Capri Wigs has a past history of uncollectible accounts by age category, as
follows:Age Class Percent UncollectibleNot past due ......... 2%1–30 days past due ...... 531–60
days past due ..... 1261–90 days past due ..... 1691–120 days past due .... 40Over 120 days
past due .... 75Instructions1. 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 Capri Wigs has a credit balance of $3,040 before adjustment on December 31, 2011.
Journalize the adjustment for uncollectible accounts.5. Assume that the adjusting entry in (4)
was inadvertently omitted, how would the omission affect the balance sheet and
incomestatement?
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Capri Wigs Company supplies wigs and hair care products to
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