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Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $21,550. The account had an
Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts 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.
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.)
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