Recording Bad Debts and Interpreting Disclosureof Allowance for DoubtfulAccounts (AP6-2)
Peer’s Coffee&Tea, Inc., is a specialty coffee roaster and marketer of branded fresh roasted whole bean coffee. It recently disclosed the following inform at ion concerning the Allowance for Doubtful Accounts on its Form 10-K Annual Report submitted to the Securities and Exchange Commission.
Allowance for Doubtful Accounts | Balance at Beginning of Period | Additions (Charges) to Expense | Write Offs | Balance at End of Period |
Year1 | $ 89 | $? | $1 | $145 |
Yea r 2 | 145 | – | ? | 67 |
Year 3 | 67 | 2 | 2 | 72 |
Required:
1. Record summary journal entries related to bad debts for year 3.
2. Supply the missing dollar amounts noted by en for year I and year 2.
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