Chapter 6, Problem 3P

Recording Bad Debts and Interpreting Disclosure of Allowance for Doubtful Accounts (AP6-2)

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)

Allowance for Doubtful Accounts	Balance at Beginning of Period	Additions (Charges) to Expense	Write-Offs	Balance at End of Period
Year 1	$128	$ ?	$ 0	$132
Year 2	132	187	?	283
Year 3	283	42	201	124

Required:

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