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BFF Travels, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Allowance for Doubtful Accounts.
BFF Travels, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Allowance for Doubtful Accounts. (dollars in millions) Increases for Bad Debt Expense $ 26 Year 2018 2017 2016 Beginning Balance. $ 38 32 34 Required: 27 16 Decreases for Write-Offs $ 2 21 18 Ending Balance $ 41 38 32 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 amounts from the above schedule. The balance at the beginning of each year in the Allowance for Doubtful Accounts is a credit balance. 1-b. 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 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. 3. Supply the missing information for 2018. 4. If BFF Travels had written off an additional $27 of Accounts Receivable during 2018, by how much would Net Receivables have decreased? How much would Net Income have decreased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4 Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 amounts from the above schedule. The balance at the beginning of each year in the Allowance for Doubtful Accounts is a credit balance. (Enter your answers in millions.) Debit Beginning Balance Ending Balance Allowance for Doubtful Accounts Credit Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4 Write the T-account in equation format to prove the above items account for the changes in the account. (Enter your answers in millions.) Beginning Balance Ending Balance $ Req 1A Req 1B Req 2 Req 3 Req 4 Record summary journal entries for 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions.) View transaction list Journal entry worksheet < 1 2 Record the adjusting entry in 2017 for bad debts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal > Req 1A Req 18 Req 2 Req 3 Req 4 Record summary journal entries for 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions.) View transaction list Journal entry worksheet 1 Record the adjusting entry in 2017 for the write-off of specific customer balances. Note: Enter debits before credits. Transaction b General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4 Supply the missing information for 2018. (Enter your answers in millions.) Allowance for Balance at Doubtful Accounts Beginning of Additions Charged to Balance at Write Offs Bad Debt Expense End of Year 38 26 2018 $ Year Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4 If BFF Travels had written off an additional $27 of Accounts Receivable during 2018, by how much would Net Receivables have decreased? How much would Net Income have decreased? (Enter your answers in millions.) Net Receivables Net Income
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