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EzScanner Corporation is the company that made the photocopier popular, but since then has grown a new business related to business process outsourcing. It recently
EzScanner Corporation is the company that made the photocopier popular, but since then has grown a new business related to business process outsourcing. It recently disclosed the following information concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. for Dec Year 2015 2014 2013 Allowance for Doubtful Accounts (dollars in millions) Increases for Decreases for Beginning Balance Bad Debt Expense Write-offs $ 96 $ 41 $ 31 108 141 78 Ending Balance $106 96 108 56 Required: 1-a. Create a T-account for the Allowance for Doubtful Accounts and enter into it the 2015 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 that the above items account for the changes in the account. 2. Record summary journal entries for 2015 related to (1) estimating bad debt expense and (ii) writing off specific balances. 3. Supply the missing dollar amounts for a and b. 4-a. If EzScanner had written off an additional $34 of accounts receivable during 2013, by how much would its Net Accounts Receivable have decreased? 4-b. If EzScanner had written off an additional $34 of accounts receivable during 2013, by how much would its Income from Operations have decreased? Req 1A Req 1B Req 2 Req3 Req 4A Req 4B Create a T-account for the Allowance for Doubtful Accounts and enter into it the 2015 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 (i.e., 10,000,000 should be entered as 10).) Allowance for Doubtful Accounts Beg. Bal. End. Bal. Req 1A Req 1B Req 2 Req3 Req 4A Req 4B ------------ Write the T-account in equation format to prove that the above items account for the changes in the account. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Beginning Balance + Ending Balance Journal entry worksheet
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