Question 2

PA8-2 Interpreting Disclosure of Allowance for Doubtful Accounts (LO 8-2] TravelToday, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report Year 2016 2015 2014 Allowance for Doubtful Accounts (dollars in thousands) Beginning Increases for Decreases for Balance Bad Debt Expense Write-Offs $ 8,800 $ 3,900 $ 7,see 4,500 3,580 12,300 see 5,388 $ Ending Balance 1,180 8,888 7,888 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2014 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 2015 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances 3. Supply the missing Information for 2016. 4. If TravelToday had written off an additional $28 of Accounts Receivable during 2016, 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. Reg 1A Reg 1B Reg 2 Reg 3 Reg 4 Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2014 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 Rega Req 1B Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Reg 4 Write the T-account in equation format to prove the above items account for the changes in the account. (Enter your answers in thousands.) Beginning Balance Ending Balance $ 0 Journal entry worksheet 2 Record the adjusting entry in 2015 for bad debts. Note: Enter debits before credits Transaction General Journal Debit Credit a Record entry Clear entry View general joumal View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2 Req 3 Reg 4 Supply the missing information for 2016. (Enter your answers in thousands.) Allowance for Doubtful Accounts Balance at Beginning of Year Write Offs Additions Charged to Bad Debt Expense 3,900 Balance at End of Year 2016 8,800 1,100 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Reg 3 Reda If TravelToday had written off an additional $28 of Accounts Receivable during 2016, by how much would Net Receivables have decreased? How much would Net Income have decreased? (Enter your answers in thousands.) Net Receivables Net Income