E8-2 (Algo) Determining Financial Statement Effects of Bad Debt Expense Estimates and Write-Offs [LO 8-2] Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $22,950. The account had an unadjusted credit balance of $11,600 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,600 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.)