Cheswick Corp -Refer to the Data for Cheswick Corp

question 103

Essay

Cheswick Corp.
The following information is for Cheswick Corp. at the end of 2017:
$\begin{array} { l r } \text { Sales } & \$ 800,000 \\\text { Sales returns and allowances } & 8,000 \\\text { Accounts receivable-December 31, 2017 } & 175,000 \\\text { Allowance for doubtful accounts-December 31, 2017 } & \\\quad \text { (Credit balance) (before adjustment for bad debts) } & 1,000 \\\text { Estimated uncollectible accounts } & \\\quad \text { (Per aging schedule at December 31, 2017) } & 7,500\end{array}$
-Refer to the data for Cheswick Corp..
Determine the effect on Cheswick Corp.' accounting equation of the year-end adjustment of bad debts using the aging approach.

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