Question

Using the data in Exercise 6-7, assume that the allowance for doubtful accounts for Cycle Parts International had a negative balance of −$11,300 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.
In Exercise 6-7, Cycle Parts International 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 asfollows:


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  • CreatedMarch 11, 2014
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