PA8-2 Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] A problem just like this one (CP8-2) is worked in a video in Supplemental Resources Expedia, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. SCHEDULE Valuation and Qualifying Accounts dollars in thousands Allowance for Balance at Additions Charged to Balance at Doubtful Accounts Beginning of Year Bad Debt Expense Write-Offs End of Year 2012 2011 2010 S 8,000 7,000 11,500 S3,500 4,100 S 700 3,100 $10,800 8,000 7,000 400 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2011 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 thousands.) Allowance for Doubtful Accounts Beg. Bal End. Bal. 1-b. Write the T-account in equation format to prove that the above items account for the changes in the account. (Enter your answers in thousands.) Beginning Balance + -Ending Balance