TravelToday, Inc , disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10 K annual report Allowance for Doubtful Accounts (dollars in thousands) Beginning Increases for Decreases for Ending Year Balance Bad Debt Expense Write Offs Balance 2016 $ 8,300 $ 3,650 $ $ 850 2015 7,300 4,250 3,250 8,300 2014 11,800 550 5,050 7,300 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 $23 of Accounts Receivable during 2016, by how much would Net Receivables have decreased How much would Net Income have decreased 1a 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 ) 1b Write the T account in equation format to prove the above items account for the changes in the account (Enter your answers in thousands ) 1c Record summary journal entries for 2015 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances (If no entry is required for a transaction event, select No Journal Entry Required in the first account field Enter your answers in thousands ) 1d Supply the missing information Allowance for doubtul accounts 2016 Beginning balance 8300 Additions charged to bad debts expense 3650 Write off Balance ending 850 1e If TravelToday had written off an additional $23 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 16, 2024

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

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

Allowance for Doubtful Accounts
(dollars in thousands)
	Beginning		Increases for		Decreases for		Ending
Year	Balance		Bad Debt Expense		Write-Offs		Balance
2016	$	8,300	$	3,650	$	?	$	850
2015		7,300		4,250		3,250		8,300
2014		11,800		550		5,050		7,300

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 $23 of Accounts Receivable during 2016, by how much would Net Receivables have decreased? How much would Net Income have decreased?

1a. 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.)

1b.

Write the T-account in equation format to prove the above items account for the changes in the account. (Enter your answers in thousands.)

1c.

Record summary journal entries for 2015 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands.)

1d.

Supply the missing information:

Allowance for doubtul accounts = 2016

Beginning balance = 8300

Additions charged to bad debts expense = 3650

Write off = ?

Balance ending = 850

If TravelToday had written off an additional $23 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.)