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Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $21,150. The account had an

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Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $21,150. The account had an unadjusted credit balance of $10,700 at that time. a. The appropriate bad debt adjustment was recorded. 6. Later, an account receivable for $1,700 was determined to be uncollectible and was written oft 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.) Assets Liabilities Sta - a b ### + + + b Liabilities + Stockholders' Equity + +

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