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Wheelys, Inc., designs and sells footwear with a wheel in the heel, worn by sometimes annoying kids at shopping malls. Assume it recently disclosed the
Wheelys, Inc., designs and sells footwear with a wheel in the heel, worn by sometimes annoying kids at shopping malls. Assume it recently disclosed the following information concerning the Allowance for Doubtful Accounts in its annual report. SCHEDULE LE Valuation and Qualifying Accounts (dollars in thousands) Allowance for Doubtful Accounts 2020 2019 2018 Balance at Beginning of Additions Charged to Bad Write Balance at Year Debt Expense offs End of Year $221 $0 $ 85 462 139. 370 464 611 $136 221 462 Required: 1-a. Complete the T-account for the Allowance for Doubtful Accounts by entering into it the 2020 amounts from the above schedule. (Enter your answers in thousands.) Beg bal End bal Allowance for Doubtful Accounts 1-b. Complete the T-account in equation format given below to prove that the above items account for the changes in the account. (Enter your answers in thousands.) Beginning balance Bad Debt Expense Ending Write Offe Balance 3. Record summary journal entries for 2019 related to (a) estimating Bad Debt Expense and (b) 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 thousands.) View transaction list Journal entry worksheet < 1 2 Record the estimate of Bad debt expenses for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 3. Record summary journal entries for 2019 related to (a) estimating Bad Debt Expense and (b) 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 thousands.) View transaction list Journal entry worksheet < 1 2 Record the writing-off of specific balances. Note: Enter debits before credits. Transaction b General Journal Debit Credit View general journal Passed. antor Clear entry 4. Supply the missing dollar amount for 2018. (Enter your answer in thousands.) Allowance for Doubtful Accounts Balance at Beginning of Year Addition Charned to Bad Debt Write Offs Bolatice of End of Year Expense 2018 $ 139 $ 464 $ 462 5-a. If Wheelys had written off an additional $65 of Accounts Receivable during 2020 and the ending allowance balance was estimated to be $136 (dollars in thousands), will net receivables be affected? O Yes O No 5-b. If Wheelys had written off an additional $65 of Accounts Receivable during 2020 and the ending allowance balance was estimated to be $136 (dollars in thousands), will the net income be affected? O Yes O No
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