Illustrate effects of adjustment for uncollectible accounts

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Adjustment for Uncollectible Accounts

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:

Age Interval	Balance	Percent Uncollectible
Not past due	$3,037,500	2%
1-30 days past due	1,350,000	1
31-60 days past due	202,500	6
61-90 days past due	90,000	17
91-180 days past due	45,000	51
Over 180 days past due	22,500	82
	$4,747,500

Assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(24,635) as of December 31, 20Y3. Get the instant assignment help.

Illustrate the effects of the adjustment for uncollectible accounts as of December 31, 20Y3, on the accounts and financial statements.

Reference no: EM133931853

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