Sonic Corp. runs the largest chain of drive-in restaurants in the United States. In its 10-K filed on November 25, 2013, Sonic reported the following changes in the Allowance for Doubtful Accounts (in thousands):

Required:
1. Create a T-account for the Allowance for Doubtful Accounts and enter into it the amounts from the above schedule. Then write the T-account in equation format to prove that the above items account for the changes in the account.
2. Record summary journal entries related to (a) estimating bad debt expense and (b) write-offs of specific balances during the year.
3. If Sonic had written off an additional $ 100 (thousand) of accounts receivable during the period, by how much would Net Receivables have decreased? How much would Net Income have decreased?

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Balance at Beginning of Period $3,400 Charged to Bad Debt Expense Amounts Written Off Balance at End of Period $3,000 $700 $1,100