PR 9-2A Wigs Plus Company supplies wigs and hair care products to beauty salons throughout California and the Pacific Northwest.

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    20,000
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    $ 2850
Paradise Beauty Store Sept 15, 2009   6050
Helix Hair Products Oct 17, 2009    800
Hairy’s Hair Care Oct 20, 2009     2000
Surf Images Nov 18, 2009       700
Oh The Hair Nov 29, 2009      3500
Mountain Coatings Dec 1, 2009    2250
Lasting Images Jan 9, 2010     7400

Wigs Plus has a past history of uncollectible accounts by age category, as follows:

Age Class               Percent 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 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 Wigs Plus has a credit balance of $1,710 before adjustment on December 31, 2009. Journalize the adjustment for uncollectible account.