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Entry for Uncollectible Accounts Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2013, and
Entry for Uncollectible Accounts Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2013, 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 $2,025,000 3 %6 1-30 days past due 900,000 1 135,000 6 31-60 days past due 61-90 days past due 60,000 20 91-180 days past due 30,000 52 Over 180 days past due 15,000 82 $3,165,000 Assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(38,605) as of December 31, 20Y3. Illustrate the effects of the adjustment for uncollectible accounts as of December 31, 2013, 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. Balance Sheet Assets = Liabilities - Stockholders' Equity Retained earnings Allowance for doubtful accounts + No effect No effect - Dec. 31. X 0 0 Statement of Cash Flows Income Statement No effect - 0 Bad debt expense
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