Expedia, 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				Increases for				Decreases for				Ending
	Year	Balance				Bad Debt Expense				Write-Offs				Balance
	2016	$	27,035			$	9,637			$	?			$	25,278
	2015		13,760				21,820				8,545				27,035
	2014		11,555				11,615				9,410				13,760

Required:

1. 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. 1-b. Write the T-account in equation format to prove the above items account for the changes in the account.

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

4. 3. Supply the missing information for 2016.

5. 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?

Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Reg 4 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. (Enter your answers in thousands.) Allowance for Doubtful Accounts Beg. Bal. End. Bal.