Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2020

APPLIED INDUSTRIAL TECHNOLOGIES, INC. & SUBSIDIARIES

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED JUNE 30, 2020, 2019, AND 2018

(in thousands)



COLUMN A	COLUMN B		COLUMN C					COLUMN D			COLUMN E
DESCRIPTION	Balance at Beginning of Period		Additions Charged to Cost and Expenses		Additions (Deductions) Charged to Other Accounts			Deductions from Reserve			Balance at End of Period
Year Ended June 30, 2020
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	10,498	$	14,055	$	—		$	10,892	(C)	$	13,661
Returns reserve	7,265		—		2,618		(B)	—			9,883
	$	17,763	$	14,055	$	2,618		$	10,892		$	23,544
Year Ended June 30, 2019
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	10,964	$	4,058	$	—		$	4,524	(C)	$	10,498
Returns reserve	2,602		738		3,925		(B)	—			7,265
	$	13,566	$	4,796	$	3,925		$	4,524		$	17,763
Year Ended June 30, 2018
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	8,056	$	2,803	$	3,548	(A)	$	3,443	(C)	$	10,964
Returns reserve	1,572		—		1,030		(A)	—			2,602
	$	9,628	$	2,803	$	4,578		$	3,443		$	13,566


(A)	Amounts in the year ending June 30, 2018 represent reserves recorded through purchase accounting for acquisitions made during the year of $3,548 and for the return of merchandise by customers of $1,030.


(B)	Amounts in the year ending June 30, 2020 and 2019 represent reserves recorded for the return of merchandise by customers. The Company adopted ASC 606 - Revenue from Contracts with Customers effective July 1, 2018 which requires the Company's sales returns reserve to be established at the gross sales value with an asset established for the value of the expected product to be returned.

(C)

Amounts represent uncollectible accounts charged off.