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8-2 (Algo) Determining Financial Statement Effects of Bad Debt Expense Estimates and Write-Offs [LO 2] ackhorse Productions, Incorporated, used the aging of accounts receivable method

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8-2 (Algo) Determining Financial Statement Effects of Bad Debt Expense Estimates and Write-Offs [LO 2] ackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful ccounts should be $21,550. The account had an unadjusted credit balance of $10,900 at that time. The appropriate bad debt adjustment was recorded. Later, an account receivable for $1,900 was determined to be uncollectible and was written off. equired: or each transaction listed above, indicate the amount and direction (+ for increase or - for decrease) of effects on the financial tatement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with minus sign.) Assets Liabilities + a. + b. + +

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