Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement

of cash flows. Its balance sheet for this year is as follows:

During the year, Ravenna paid a $$8,700$ cash dividend and sold a piece of equipment for $$4,350$ that originally cost

$$9,600$ and had accumulated depreciation of $$6,400.$ The company did not retire any bonds or repurchase any of its own

common stock during the year.

$5-$a$.$ What are the amount and direction $(+$ or $-)$ of the accounts receivable adjustment to net income in the operating activities sect

of the statement of cash flows?

$5-$b$.$ What does this adjustment represent?