Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for...
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Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $21,550. The account had an unadjusted credit balance of $10,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $1,900 was determined be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction (+ for increase or for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities a. = b. b. = +++ Stockholders' Equity Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $21,550. The account had an unadjusted credit balance of $10,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $1,900 was determined be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction (+ for increase or for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities a. = b. b. = +++ Stockholders' Equity
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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