Answer:
Explanation:
1a) Allowance for doubtful Accounts
Particulars Debit Credit Balance
Beg. Bal. $12,700.00
Bad debts expense $1,000.0 $13,700.00
Write offs $5,500.00 $8,200.00
End. Bal $8,200.00
b)Beginning Balance + Increase for bad debts expense - Decrease for write offs = Ending Balance
$12,700.00 + $1,000.00 - $5,500.00 = $8,200.00
2) Journal Entries - Travel today Inc.
Transaction Particulars Debit Credit
a Bad debts expense Dr $5,700.00
To Allowance for doubtful accounts $5,700.00
(To record bad debts provision for 2015)
b Allowance for doubtful accounts Dr $3,700.00
To Accounts receivables $3,700.00
(To write off receivables)
3)
Allowance for doubtful accounts 2016
Beginning Balance + Increase for bad debts expense - Decrease for write offs = Ending Balance
$9,200.00 + $4,100.00 - $12,000.00 = $1,300.00
4) On writing off additional accounts receivables by $37, there will be no impact on net accounts receivables and income statement as balance in accounts receivables and allowance for doubtful accounts decreased by $37, therefore net receivable and net income will remains the same.
Net receivables - 0
Net Income - 0
