Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Estimate what the balance of Allowance for Doubtful Accounts should be as of December 31, 20Y3.

part 2

Using the data in Exercise 6-6, assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(6,650) 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.

\begin{tabular}{lrc} Age Interval & Balance & Percent Uncollectible \\ \hline Not past due & $925,000 & 1% \\ 130 days past due & 375,000 & 2 \\ 3160 days past due & 50,000 & 6 \\ 6190 days past due & 30,000 & 14 \\ 91180 days past due & 22,500 & 60 \\ Over 180 days past due & 12,500 & 90 \\ & $1,415,000 & \end{tabular} Details