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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 following

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. Allowance for Doubtful Accounts 2020 2019 2018 SCHEDULE II Valuation and Qualifying Accounts (dollars in thousands) Balance at Beginning of Additions Charged to Bad Write- Balance at Year Debt Expense Offs End of Year $338 545 144 $ 0 345 441 $116 552 $222 338 ? 545 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 Write Offs Ending Balance 2. This part of the question is not part of your Connect assignment. 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 View journal entry worksheet No Transaction General Journal Debit Credit 4. Supply the missing dollar amount for 2018. (Enter your answer in thousands.) Allowance for Doubtful Balance at Beginning of + Additions Charged to Bad Debt Write Offs Accounts Year Balance at End of Year Expense 2018 $ 144 $ 441 $ 545 5-a. If Wheelys had written off an additional $56 of Accounts Receivable during 2020 and the ending allowance balance was estimated to be $222 (dollars in thousands), will net receivables be affected? Yes No 5-b. If Wheelys had written off an additional $56 of Accounts Receivable during 2020 and the ending allowance balance was estimated to be $222 (dollars in thousands), will the net income be affected? Yes No

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