5.4 The following information is taken from the 2010 annual report to shareholders of Hewlett-Packard (HP) Co. For Fiscal 2010 For Fiscal 2009 Provision for doubtful $ 156 million At Fiscal Year-end 2010 $345 million At Fiscal Year-end 2009 16,537 million accounts Accounts receivable, net 18,481 million Accounts receivable, gross 19,006 million 17,166 million Required: a/ What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2010 and 2009, respectively? b/ What kind of account is the provision for doubtful accounts in HP's financial statements? (Note: Provision for doubtful accounts is synonymous with bad debt expense; that is, the charge against income for estimated uncollectible accounts from credit sales in that period) c/ Using a T-account for the allowance for doubtful accounts, identify the amounts written off during the year 2010.
5.4 The following information is taken from the 2010 annual report to shareholders of Hewlett-Packard (HP) Co. For Fiscal 2010 For Fiscal 2009 Provision for doubtful $ 156 million At Fiscal Year-end 2010 $345 million At Fiscal Year-end 2009 16,537 million accounts Accounts receivable, net 18,481 million Accounts receivable, gross 19,006 million 17,166 million Required: a/ What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2010 and 2009, respectively? b/ What kind of account is the provision for doubtful accounts in HP's financial statements? (Note: Provision for doubtful accounts is synonymous with bad debt expense; that is, the charge against income for estimated uncollectible accounts from credit sales in that period) c/ Using a T-account for the allowance for doubtful accounts, identify the amounts written off during the year 2010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sub= 26 Subject= Finance
Transcribed Image Text:5.4 The following information is taken from the 2010 annual report to shareholders of Hewlett-Packard (HP) Co.
For Fiscal 2010
For Fiscal 2009
Provision for doubtful
$ 156 million
$345 million
At Fiscal Year-end 2009
accounts
At Fiscal Year-end 2010
18,481 million
Accounts receivable, net
16,537 million
Accounts receivable, gross
19,006 million
17,166 million
Required:
a/ What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2010 and 2009,
respectively?
b/ What kind of account is the provision for doubtful accounts in HP's financial statements? (Note:
Provision for doubtful accounts is synonymous with bad debt expense; that is, the charge against income
for estimated uncollectible accounts from credit sales in that period)
c/ Using a T-account for the allowance for doubtful accounts, identify the amounts written off during the year
2010.
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