TravelToday, disclosed the following rounded amounts (in
thousands) concerning the Allowance for Doubtful Accounts on its
Form 10-K annual report. SCHEDULE II Valuation and Qualifying
Accounts (dollars in thousands) Allowance for Doubtful Accounts
Balance at Beginning of Year Additions Charged to Bad Debt Expense
Write-Offs Balance at End of Year 2012 $ 10,000 $ 4,500 $ 1,700 $
12,800 2011 9,000 5,100 4,100 10,000 2010 13,500 1,400 ? 9,000
Required: 1-a. Prepare a T-account for the Allowance for Doubtful
Accounts and enter into it the 2011 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.) 1-b. Write the T-account in equation format
to prove that the above items account for the changes in the
account. (Enter your answers in thousands.) 2. Record summary
journal entries for 2012 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.) 3. Supply
the missing information for 2010. (Enter your answers in
thousands.) 4. If TravelToday had written off an additional $40 of
Accounts Receivable during 2010, by how much would Net Receivables
have decreased? How much would Net Income have decreased? (Enter
your answers in thousands.)