Using the data in Exercise 6-7, assume that the allowance for doubtful accounts for Sun Valley Rides
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Using the data in Exercise 6-7, 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.
Data from Exercise 6-7
Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:
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