PA8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Travel Today, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. $ 40 34 36 Allowance for Doubtful Accounts Year 2018 2017 Beginning Balance 2016 Required: (dollars in millions) Increases for Bad Debt Expense $ 28 29 18 Decreases for Write-Offs $ ? 23 20 Ending Balance $ 43 40 34 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 Travel Today had written off an additional $29 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. Req 1A Req 18 Req 2 Req 3 Req 4 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. (Enter your answers in millions.) Allowance for Doubtful Accounts Debit. Credit