Answer:
The adjustment had a negative impact in the Net Income with an entry through Bad Debt Expenses.
Bad debt expense $ 7,900
Allowance for Uncollectible Accounts $ 7,900
Step-by-step explanation:
As you have less Net Income then your retained earnings decrease and else the Account Receivable in the Assets part of the balance sheet.
Assets End Adj
TOTAL CURRENT ASSETS
TOTAL ASSETS 599,100
TOTAL LIABILITIES 208,000
TOTAL EQUITY 391,100
TOTAL EQUITY + LIABILITIES 599,100
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Net Income 91,400
Wrong version
Assets Worng
TOTAL ASSETS 607,000
TOTAL LIABILITIES 208,000
TOTAL EQUITY 399,000
TOTAL EQUITY + LIABILITIES 607,000
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