Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $23,150. The account had an unadjusted credit balance of $11,700 at that time.

The appropriate bad debt adjustment was recorded.

Later, an account receivable for $2,700 was determined to be uncollectible and was written off.

Required:

For each transaction listed above, indicate the amount and direction (+ for increase or for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)