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.

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 year3.

Transcribed Image Text:

Schedule II Valuation and Qualifying Accounts (dollars in thousands) Additions Charged to Costs and Expenses $6,014 (?) 4,752 Balance at Beginning of Year Allowances for Doubtful Accounts Balance at End of Year Deductions from Reserve $5,941 Year 3 Year 2 Year 1 (?) $1,108 2,406 $1,108 2,406 2,457 5,751 (?)