Wolverine World Wide designs and markets Merrell, Sperry, Wolverine, and Keds shoes. Its products are sold through department stores and specialty and Internet retailers. In a recent annual report, it disclosed the following information concerning its allowance for doubtful accounts (in millions):

Required:
1. Record summary journal entries related to the allowance for doubtful accounts for the current year.
2. If Wolverine World Wide had written off $5 million less of accounts receivable during the period, how would receivables, net, and net income have been affected? Explain why.

Transcribed Image Text:

Balance at Beginning of Period $9.5 Charged to Costs and Expenses $16.3 Amounts Written Off $13.7 Balance at End of Period $12.1