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:

Â	Â	Not	Days Past Due
Â	Â	Past	Â	Â	Â	Â	Â
Customer	Balance	Due	1–30	31–60	61–90	91–120	Over 120
Daytime Beauty	20,000	20,000	Â	Â	Â	Â	Â
Blount Wigs	11,000	Â	Â	11,000	Â	Â	Â
Zabka’s	2,900	Â	2,900	Â	Â	Â	Â
Subtotals	780,000	398,600	197,250	98,750	33,300	29,950	22,150

The following accounts were unintentionally omitted from the aging schedule:

Customer	Due Date	Balance
Uniquely Yours	July 1, 2007	$1,200
Paradise Beauty Store	Sept. 29, 2007	1,050
Morgan’s Hair Products	Oct. 17, 2007	800
Hairy’s Hair Care	Oct. 31, 2007	2,000
Superior Images	Nov. 18, 2007	700
Oh The Hair	Nov. 30, 2007	3,500
Mountain Coatings	Dec. 1, 2007	1,000
Theatrical Images	Jan. 3, 2008	6,200

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

Â	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 uncollectible accounts.