Entry for Uncollectible Accounts

Easy Rider International is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Age Interval

Balance

Percent

Uncollectible

Not past due

$1,850,000

1

%

130 days past due

750,000

2

3160 days past due

100,000

6

6190 days past due

60,000

14

91180 days past due

45,000

60

Over 180 days past due

25,000

90

$2,830,000

Assume that the allowance for doubtful accounts for Easy Rider International had a negative balance of $(13,300) as of December 31, 20Y3.

Illustrate the effects of the adjustment for uncollectible accounts as of December 31, 20Y3, on the accounts and financial statements.

If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows

Balance Sheet

Assets

=

Liabilities

+

Stockholders' Equity

+

=

+

Dec. 31.

Statement of Cash Flows

Income Statement