Skechers designs and markets lifestyle and performance footwear for men, women, and children. Its products are sold through department stores and specialty and Internet retailers. In a recent annual report, it disclosed the following information concerning its allowance for doubtful accounts (in thousands):

Required:
1. Record summary journal entries related to the allowance for doubtful accounts for the current year.
2. If Skechers had written off $15 million less of accounts receivable during the period, how would receivables, net, and net income have been affected? Explain why.

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Balance at Charged to CostsAmounts Balance at Beginning of Period and Expenses Written Off End of Period CWritten Off End of $5,980 $6,284 S(6,823) $5,441