Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PB8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Lewis Copiers Manufacturing Company is the company that made the photocopier popular, but since
PB8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Lewis Copiers Manufacturing 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. Year 2018 2017 2016 Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Decreases for Beginning Balance Debt Expense Write-offs $ 65 $ 20 $ 23 70 22 a 80 b 31 Ending Balance $ 62 65 70 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 Lewis Copiers had written off an additional $26 (thousand) of accounts receivable during the period, 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 1B Req 2 Req 3 Req 4A 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. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Allowance for Doubtful Accounts Debit Credit Beginning Balance Ending Balance Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4A Write the T-account in equation format to prove that the above items account for the changes in the account. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Beginning Balance + Ending Balance + 0 Reg 1A Req 1B Reg 2 Reg 3 Req 4A Record summary journal entries for 2018 related to (i) estimating bad debt expense and (ii) writing off specific 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 (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record the adjusting entry for bad debts for 2018. Note: Enter debits before credits. Transaction General Journal Debit Credit i Record entry Clear entry View general Journal Req 1A Reg 1B Reg 2 Req3 Req 4A Record summary journal entries for 2018 related to (i) estimating bad debt expense and (ii) writing off specific 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 (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started