Xerox Corporation is the company that made the photocopier popular, although it now describes itself as a technology and services enterprise that helps businesses deploy document management strategies and improve productivity. It recently disclosed the following information concerning the allowance for doubtful accounts on its Form 10-K annual report.

Required:
1. Create a T-account for the Allowance for Doubtful Accounts and enter into it the 2008 amounts from the above schedule. Then, write the T-account in equation format to prove that the above items account for the changes in the account.
2. Record summary journal entries for 2008 related to (i) estimating bad debt expense and (ii) writing off specific balances.
3. Supply the missing dollar amounts for a and b.
4. If Xerox had written off an additional $20 of accounts receivable during 2010, how would it have affected Net Accounts Receivable? How would the write-off have affected Net Income? Explain.

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SCHEDULE II Valuation and Qualifying Accounts (dollars in millions) Balance at Write- Offs Balance at Additions Charged to Allowance for Doubtful AccountsBeginning of Year End of Year Bad Debt Expense $ 72 $131 148 112 $69 2008 2009 2010 $128 131 148 109 82