Answer:
The adjustment had a negative impact in the Net Income with an entry through Bad Debt Expenses.
Bad debt expense  $ 7,900 Â
Allowance for Uncollectible Accounts  $ 7,900
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 Â Â
TOTAL ASSETS Â 599,100 Â
TOTAL LIABILITIES Â 208,000
TOTAL EQUITY Â 391,100 Â
TOTAL EQUITY + LIABILITIES Â 599,100 Â
 -  Â
Net Income  91,400 Â
Wrong version
Assets Worng Â
TOTAL ASSETS Â 607,000
TOTAL LIABILITIES Â 208,000 Â
TOTAL EQUITY Â 399,000 Â
TOTAL EQUITY + LIABILITIES Â 607,000 Â
 -  Â
