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Inferring Bad Debt Write-Offs and Cash Collections from Customers Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Microsoft reported the following information about net sales revenue and accounts receivable (amounts in millions). Accounts receivable, net of allowances of $411 and $377 Net sales revenue Current Year $29,524 Prior Year $26,481 66,069 64,497 Source: Microsoft Corporation According to its Form 10-K, Microsoft recorded bad debt expense of $116 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year?

Inferring Bad Debt Write-Offs and Cash Collections from Customers Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Microsoft reported the following information about net sales revenue and accounts receivable (amounts in millions). Accounts receivable, net of allowances of $411 and $377 Net sales revenue Current Year $29,524 Prior Year $26,481 66,069 64,497 Source: Microsoft Corporation According to its Form 10-K, Microsoft recorded bad debt expense of $116 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 8MC: Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of...
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Inferring Bad Debt Write-Offs and Cash Collections from Customers Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Microsoft reported the following information about net sales revenue and accounts receivable (amounts in millions). Accounts receivable, net of allowances of $411 and $377 Net sales revenue Current Year $29,524 Prior Year $26,481 66,069 64,497 Source: Microsoft Corporation According to its Form 10-K, Microsoft recorded bad debt expense of $116 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year?
Transcribed Image Text:Inferring Bad Debt Write-Offs and Cash Collections from Customers Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Microsoft reported the following information about net sales revenue and accounts receivable (amounts in millions). Accounts receivable, net of allowances of $411 and $377 Net sales revenue Current Year $29,524 Prior Year $26,481 66,069 64,497 Source: Microsoft Corporation According to its Form 10-K, Microsoft recorded bad debt expense of $116 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year?
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