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PA8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Walker Hills Companies, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accou Form 10-K annual report. Year 2018 2017 2016 Beginning Balance Req 1A Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Debt Expense $47 41 43 Beginning Balan Req 18 $35 36 25 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 amounts from the above schedule. T 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 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer accou balances. 3. Supply the missing information for 2018. 4. If Walker Hills Companies had written off an additional $36 of Accounts Receivable during 2018, by how much would Net Receivables have decreased? How much would Net Income have decreased? Complete this question by entering your answers in the tabs below. Debit Em 2 Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 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 millions.) Req 3 Decreases for Write-offs Allowance for Doubtful Accounts 30 27 Credit Req 4 Ending Balance $ 50 47 41

PA8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Walker Hills Companies, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accou Form 10-K annual report. Year 2018 2017 2016 Beginning Balance Req 1A Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Debt Expense $47 41 43 Beginning Balan Req 18 $35 36 25 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 amounts from the above schedule. T 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 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer accou balances. 3. Supply the missing information for 2018. 4. If Walker Hills Companies had written off an additional $36 of Accounts Receivable during 2018, by how much would Net Receivables have decreased? How much would Net Income have decreased? Complete this question by entering your answers in the tabs below. Debit Em 2 Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 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 millions.) Req 3 Decreases for Write-offs Allowance for Doubtful Accounts 30 27 Credit Req 4 Ending Balance $ 50 47 41

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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ok 1 int PA8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Walker Hills Companies, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts or Form 10-K annual report. Year 2018 2017 2016 Beginning Balance $ 47 41 43 Req 1A Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Debt Expense Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 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 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. 3. Supply the missing information for 2018. 4. If Walker Hills Companies had written off an additional $36 of Accounts Receivable during 2018, by how much would Net Receivables have decreased? How much would Net Income have decreased? Complete this question by entering your answers in the tabs below. Req 18 Debit Beginning Balance Entine Dalaman $35 36 25 2 Req 3 Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 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 millions.) Decreases for Write-offs $? 30 27 Allowance for Doubtful Accounts Req 4 Credit Ending Balance $50 47 41
Transcribed Image Text:ok 1 int PA8-2 (Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] Walker Hills Companies, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts or Form 10-K annual report. Year 2018 2017 2016 Beginning Balance $ 47 41 43 Req 1A Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Debt Expense Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 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 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. 3. Supply the missing information for 2018. 4. If Walker Hills Companies had written off an additional $36 of Accounts Receivable during 2018, by how much would Net Receivables have decreased? How much would Net Income have decreased? Complete this question by entering your answers in the tabs below. Req 18 Debit Beginning Balance Entine Dalaman $35 36 25 2 Req 3 Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 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 millions.) Decreases for Write-offs $? 30 27 Allowance for Doubtful Accounts Req 4 Credit Ending Balance $50 47 41
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