In the event the Company determines a smaller or larger reserve is appropriate, it would record a benefit or charge to selling, general and administrative expense in the period in which such a determination was made. As of December 31, 2016 and 2015, the allowance for doubtful accounts was $11.3 million and $5.9 million, respectively.

Schedule II

Valuation and Qualifying Accounts

(In thousands)

Balance at Charged to Write-Offs Balance at

Beginning Costs and Net of End of

of Year Expenses Recoveries Year

Allowance for doubtful accounts

For the year ended December 31, 2016 $ 5,930 $ 23,575 $ (18,164) $ 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 Under Armour 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