PA8-2 Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2]

TravelToday, disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report.

PA8-2 1nterpreting Dsclosure of Allowance for Doubtful Accounts [co 8-2] TravelToday, disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Ac sclosed the following rounded amounts (in thousands) concernir ccounts on its Form io-K annual report. SCHEDLE 11 Valuation and Qualituina Accounts dollars in thousands) Balance at Beginning of Year 8,600 7,600 12,100 Additions Charged to Bad Debt Expense 3,800 4,400 Allowance for Write-Off 1,000 3,400 Balance at End of Year $11,400 8,600 7,600 Doubtful Accounts 2012 2011 2010 700 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2011 amounts from the Accounts and enter into it the 2011 amounts trom 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 n thousands.) Beginning Balance+ Ending Balance