record summary journal entries related to bad debts for year 3 555579

Aug 29, 2021 | Uncategorized

Recording Bad Debts and Interpreting Disclosure of Allowance for Doubtful Accounts – Under various registered brand names, Saucony, Inc., and its subsidiaries develop, manufacture, and market bicycles and component parts, athletic apparel, and athletic shoes. It recently disclosed the following information concerning the allowance for doubtful accounts on its Form 10-K Annual Report submitted to the Securities and Exchange Commission.

Schedule II

Valuation and Qualifying Accounts
(dollars in thousands)

Allowances for
Doubtful Accounts

Balance at
Beginning
of Year

Additions
Charged to Costs
and Expenses

Deductions
from Reserve

Balance at
End of Year

Year 3

$1,108

$6,014

$5,941

(?)

Year 2

2,406

(?)

5,751

$1,108

Year 1

2,457

4,752

(?)

2,406

Required:

1. Record summary journal entries related to bad debts for year 3.

2. Supply the missing dollar amounts noted by (?) for year 1, year 2, and year 3.