Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowance of $349 in 2020 and $340 in 2019. Req 1 Req 2A In addition, the income statement reported sales revenue of $109,256 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $108,868 million. There could have been significant recoveries of accounts receivable previously written off. Req 2B 2020 $ 14,184 a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach 2019 $ 14,071 Compute the following ($ in millions): a. The amount of bad debts written off by Green during 2020 (Hint: Treat it as a plug in the gross accounts receivable account). % b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint: Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. Note: Enter your answers in millions. Round your percentage answer to 3 decimal places. Show less A
Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowance of $349 in 2020 and $340 in 2019. Req 1 Req 2A In addition, the income statement reported sales revenue of $109,256 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $108,868 million. There could have been significant recoveries of accounts receivable previously written off. Req 2B 2020 $ 14,184 a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach 2019 $ 14,071 Compute the following ($ in millions): a. The amount of bad debts written off by Green during 2020 (Hint: Treat it as a plug in the gross accounts receivable account). % b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint: Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. Note: Enter your answers in millions. Round your percentage answer to 3 decimal places. Show less A
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 3MAD: Deere Company (DE) manufactures and distributes farm and construction machinery that it sells...
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