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P6-2 Recording Bad Debts and Interpreting Disclosure of Allowance for Doubtful Accounts LO6-2 IThe following information applies to the questions displayed below Peet's Coffee &

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P6-2 Recording Bad Debts and Interpreting Disclosure of Allowance for Doubtful Accounts LO6-2 IThe following information applies to the questions displayed below Peet's Coffee & Tea, Inc., is a specialty coffee roaster and marketer of branded fresh-roasted whole bean coffee. It recently disclosed the following information concerning the Allowance for Doubtful Accounts on its Form 10-K Annual Report submitted to the Securities and Exchange Commission. A summary of the Allowance for Doubtful Accounts is as follows (dollars in thousands): Allowance Balance at Beginning of Period Balance at Charges) to Expense Write-Offs for Doubtful Accounts Year 1 Year 2 Year 3 $ 99 149 85 End of Period $149 85 97 $ 18 182 14 References Section Break P6-2 Recording Bad Debts and Interpreting Disclosure of Allowance for Doubtful Accounts LO6-2

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