Expedia 2007 Annual Report Download - page 105

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NOTE 17 — Valuation and Qualifying Accounts
We accrue the cost associated with purchases made on our website related to the use of fraudulent credit
cards “charged-back” due to payment disputes and cancellation fees. The following table presents the changes
in the valuation and qualifying accounts.
Description
Balance of
Beginning of
Period
Charges to
Earnings
Charges to
Other
Accounts Deductions
Balance at
End of
Period
(In thousands)
2007
Allowance for doubtful accounts ..... $ 4,874 $4,289 $395 $(3,477) $ 6,081
Credit card charge-backs........... 3,635 80 — (176) 3,539
Cancellation fees ................ 2,411 492 — (142) 2,761
Total ....................... $10,920 $4,861 $395 $(3,795) $12,381
2006
Allowance for doubtful accounts ..... $ 3,914 $2,747 $200 $(1,987) $ 4,874
Credit card charge-backs........... 3,020 785 — (170) 3,635
Cancellation fees ................ 2,105 78 721 (493) 2,411
Total ....................... $ 9,039 $3,610 $921 $(2,650) $10,920
2005
Allowance for doubtful accounts ..... $ 2,338 $1,753 $ — $ (177) $ 3,914
Credit card charge-backs........... 3,010 596 — (586) 3,020
Cancellation fees ................ 2,120 — — (15) 2,105
$ 7,468 $2,349 $ — $ (778) $ 9,039
F-39
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)