Expedia, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report.

Required:
1. Create a T-account for the Allowance for Doubtful Accounts and enter into it the 2014 amounts from the above schedule. Then write the T-account in equation format to prove the above items account for the changes in the account. 

2. Record summary journal entries for 2015 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. 

3. Supply the missing dollar amount noted by “?” for 2016.

4. If Expedia had written off an additional $20 of Accounts Receivable during 2016, by how much would Net Receivables have decreased? How much would Net Income have decreased?

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Allowance for Doubtful Accounts (dollars in thousands) Decreases for Increases for Bad Debt Expense Ending Year Beginning Balance Write-Offs Balance $27,035 $ 9,637 $25,278 27,035 2016 2015 13,760 21,820 8,545 2014 11,555 11,615 9,410 13,760