PB8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Agrawal Scanning Company is the company that made the photocopier popular, but since then has grown a new business related to business process outsourcing. It recently disclosed the following information concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Allowance for Doubtful Accounts Year 2018 2017 2016 Beginning Balance $ 70 75 85 (dollars in millions) Increases for Bad Debt Expense $ 25 27 b Decreases for Write-Offs $ 28 Ending Balance a 36 $ 67 70 75 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2018 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 that the above items account for the changes in the account. 2. Record summary journal entries for 2018 related to (1) estimating bad debt expense and (ii) writing off specific balances. 3. Supply the missing information for 2017 and 2016. 4. If Agrawal Scanning had written off an additional $31 (thousand) of accounts receivable during the period, by how much would Net Receivables have decreased? How much would Net Income have decreased?