Question
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
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 $1,687,500 2% 1-30 days past due 750,000 3 31-60 days past due 112,500 6 61-90 days past due 50,000 17 91-180 days past due 25,000 51 Over 180 days past due 12,500 80 Total $2,637,500 Assume that the Allowance for Doubtful Accounts for Sun Valley Rides had a negative balance of $(29,080) as of December 31, 2013. 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. Assets December 31 Statement of Cash Flows Balance Sheet. Assets Liabilities Stockholders' Equity Income Statement D Nevt
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