Well out of the reg/rec it should go to the brushes and join the tci at the most basic level.
Want my advice? Get a good schematic of your year and go through the entire bike. I cannot emphasize enough the importance of proper wiring. You can have the best rephased engine, thousands of dollars in frame work and accessories, but one wire can ruin your day.
I found mud, yes mud, that was probably 20 years old in my original harness. Connectors were corroded, broken wires, burned spots and, of course, when I unwrapped it like you, wires fell out. And this was the original harness, untouched by the PO. Your bike is 28 years old with substandard wiring to begin with.
Reading the schematics is not hard once you get used to it. As you asked previously, the wires start at a point and end at a point, either connecting to another wire, by the "black dot" symbol, or going directly to another part. Wires running parallel are usually in a bundle together. They are color coded for ease of use and to be universal.
Just study them a little, you'll get it.
But do not guess, never guess!!!!!