1A.

1B.

2.

The second part of the jounral entry asks to:

Record the adjusting entry in 2015 for the write-off of specific customer balances.

3.

4.

TravelToday, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Allowance for Doubtful Accounts (dollars in thousands) Beginning Balance Increases for Bad Debt Expense 4,300 4,900 1,200 Ending Balance $ 1,500 9,600 8,600 Decreases for Write-Offs Year 2016 2015 2014 $ 9,600 8,600 13,100 3,900 5,700 Required 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2014 amounts from the above schedule. The balance at the beginning of each year in the Allowance for Doubtful Accounts is a credit balance 2. Record summary journal entries for 2015 related to (a) estimating Bad Debt Expense and (b) writing off specific customer 3. Supply the missing information for 2016 1-b. Write the T-account in equation format to prove the above items account for the changes in the account. account balances 4. If TravelToday had written off an additional $36 of Accounts Receivable during 2016, by how much would Net Receivables have decreased? How much would Net Income have decreased