As of December 31, 2016 and 2015, the allowance for doubtful accounts was $11.3 million and $5.9 million, respectively. Bobs Mattresses also disclosed the following details in their 2016 Annual Report:

Schedule II Valuation and Qualifying Accounts (In thousands)

For the year ended December 31, 2016

Balance at Beginning of Year $ 5,930

Charged to Cost of Expenses $ 23,575

Write-Offs Net to Recovery $ (18,164)

Balance at End of Year $ 11,341

Instructions: Assume that the balance in accounts receivable was $440,000 at 12/31/15, and $634,000 at 12/31/16. Sales for the 2016 year, all on account, amounted to $5,000,000 (all amounts in thousands). Record the following entries below for Bobs Mattresses for 2016 and indicate the impact ( = increase, or = decrease) of the entries on the balance sheet and income statement categories.

1. Credit Sales for 2016

2. Write-offs of uncollectible accounts for the year

3. Collections on accounts receivable for the year (you need to calculate this number)

4. Adjusting entry to record Bad Debt Expense

#

ACCOUNT NAME

DEBIT

CREDIT

BALANCE SHEET

INCOME STMT

A

=

L

+

Eq

R

-

Ex