PA8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Away Travel, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts on its Form 10K annual report. Required: 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 Away Travel had written off an additionai $30 of Accounts Recelvable during 2018, by how much would Net Recelvables have decreased? How much would Net Income have decreased? Required: 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 Away Travel had written off an additional $30 of Accounts Recelvable 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. Prepare a T-account for the Allowance for Doubtful Accounts and enter inko 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.) 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 Away Travel had written off an additional $30 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. Write the T-account in equation format to prove the above items account for the changes in the account. (Enter your answers in millions.) 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.) Journal entry worksheet Record the adjusting entry in 2017 for bad debts. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Supply the missing information for 2018. (Enter your answers in millions.) Required: 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 Away Travel had written off an additional $30 of Accounts Receivable during 2018, by how much would Net Recelvables have decreased? How much would Net Income have decreased? Complete this question by entering your answers in the tabs below. If Away Travel had written off an additional $30 of Accounts Receivable during 2018, by how much would Net Recelvables have decreased? How much would Net Income have decreased? (Enter your answers in millions.)
