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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach $ 14,184 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
Transcribed Image Text: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 a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach $ 14,184 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
Req 1 Current assets: Receivables Suppose that Green had used the direct write-off method to account for bad debts, calculate the accounts receivable information that would be included in the 2020 year-end balance sheet. Note: Enter your answers in millions. Req 1 Req 2A Bad debt expense Req 2A Req 2B 2020 Req 2B 2019 Suppose that Green had used the direct write-off method to account for bad debts, calculate the amount of bad debt expense that Green would include in its 2020 income statement. Note: Enter your answers in millions.
Transcribed Image Text:Req 1 Current assets: Receivables Suppose that Green had used the direct write-off method to account for bad debts, calculate the accounts receivable information that would be included in the 2020 year-end balance sheet. Note: Enter your answers in millions. Req 1 Req 2A Bad debt expense Req 2A Req 2B 2020 Req 2B 2019 Suppose that Green had used the direct write-off method to account for bad debts, calculate the amount of bad debt expense that Green would include in its 2020 income statement. Note: Enter your answers in millions.
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