Recording Bad Debts and Interpreting Disclosure of Allowance for Doubtful Accounts
Peet€™s Coffee & Tea, Inc., is a specialty coffee roaster and marketer of branded fresh roasted whole bean coffee. 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. A summary of the Allowance for Doubtful Accounts is as follows (dollars in thousands):

Required:
1. Record summary journal entries related to bad debts for year 3.
2. Supply the missing dollar amounts noted by (?) for year 1 and year2.

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Additions (Charges) to Expense $ ? Balance at Beginning of Period Balance at End of Allowance for Doubtful Accounts Write-Offs Period $ 89 Year 1 Year 2 Year 3 $1 $145 145 67 72 67