$\backslash$table$[[31-60$ days past due,$112,500,6],[61-90$ days past due,$50,000,17],[91-180$ days past due,$25,000,50],[$Over $180$ days past due,$12,500,80],[,$$$2,637,500,]]$

Assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $$(31,620)$ as of December $31,20Y3.$

Illustrate the effects of the adjustment for uncollectible accounts as of December $31,20$Y$3,$ 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, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value.

Financial Statement Effects

Balance Sheet

$\backslash$table$[[,$Assets,$=,$Liabilities,$+,$Stockholders' Equity$],[$Accounts receivable,$-$ Allowance for doubtful accounts,$=,$No effert,$+,$Retained earnings$]]$

Statement of Cash Flows

Income Statement

No effect

Bad debt expense