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E8-2 (Algo) Determining Financial Statement Effects of Bad Debt Expense Estimates and Write-Offs (LO 8-2) Blockhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $22,350. The account had an unadjusted credit balance of $11.300 at that time. a. The appropriate bad debt adjustment was recorded. b. Later an account receivable for $2,300 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.) Stock Liabilities Assets b D