Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2004 10-K report. Support My October 31 (in millions) 2005 2004 Accounts receivable, net $9,903 $10,226 HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts. For the fiscal years ended October 31 (in millions) 2005 2004 2003 Allowance for doubtful accounts-accounts receivable Balance, beginning of period $ 286 $ 347 $ 410 Increase in allowance from acquisition 9 Addition of bad debts provision 17 (6 29 Deductions, net of recoveries (76) (64) (92) Balance, end of period $ 227 $ 286 $ 347 (a) What is the gross amount of accounts receivables for HPQ in fiscal 2005 and 2004? ($ millions) 2005 2004 Gross accounts receivable (b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2005 and 2004? (Round your answers to two decimal places.) 2004 2005 ($ millions) Percentage of uncollectible accounts to gross accounts receivable (c)What amount of bad debts expense did HPQ report each year 2003 through 2005? 2003 2005 2004 (S millions) Bad debt expense (d)Compute HPQ's write-offs as a percentage of the allowance account at the beginning of the year (Round your answers to two decimal places). lolomama.pdf Amount actually written off$ 2005 write-offs as a percentage of beginning of year allowance: * GA2 Spreadsheet.xlsx IMG 7609.jpg 000t fo ndf
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2004 10-K report. Support My October 31 (in millions) 2005 2004 Accounts receivable, net $9,903 $10,226 HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts. For the fiscal years ended October 31 (in millions) 2005 2004 2003 Allowance for doubtful accounts-accounts receivable Balance, beginning of period $ 286 $ 347 $ 410 Increase in allowance from acquisition 9 Addition of bad debts provision 17 (6 29 Deductions, net of recoveries (76) (64) (92) Balance, end of period $ 227 $ 286 $ 347 (a) What is the gross amount of accounts receivables for HPQ in fiscal 2005 and 2004? ($ millions) 2005 2004 Gross accounts receivable (b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2005 and 2004? (Round your answers to two decimal places.) 2004 2005 ($ millions) Percentage of uncollectible accounts to gross accounts receivable (c)What amount of bad debts expense did HPQ report each year 2003 through 2005? 2003 2005 2004 (S millions) Bad debt expense (d)Compute HPQ's write-offs as a percentage of the allowance account at the beginning of the year (Round your answers to two decimal places). lolomama.pdf Amount actually written off$ 2005 write-offs as a percentage of beginning of year allowance: * GA2 Spreadsheet.xlsx IMG 7609.jpg 000t fo ndf
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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Interpreting the Accounts receivable Footnote
Hewlett-Packard Company (HPQ) reports the following in its 2004 10-K report.
Support My Sul
October 31 (in millions)
2005
2004
Accounts receivable, net $9,903 $10,226
HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31 (in millions) 2005 2004 2003
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period
$286 $347 $410
Increase in allowance from acquisition
6.
Addition of bad debts provision
17
(6)
29
Deductions, net of recoveries
(76)
(64)
(92)
Balance, end of period
$227 $286 $347
(a) What is the gross amount of accounts receivables for HPQ in fiscal 2005 and 2004?
($ millions)
2005
2004
Gross accounts receivable
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2005 and 2004? (Round your answers to two decimal places.)
2004
2005
($ millions)
Percentage of uncollectible accounts to gross accounts receivalble
(c)What amount of bad debts expense did HPQ report each year 2003 through 2005?
2004
2003
2005
($ millions)
$4
$.
Bad debt expense
$4
(d)Compute HPQ's write-offs as a percentage of the allowance account at the beginning of the year (Round your answers to two decimal places).
lolomama.pdf
Amount actually written off $
2005 write-offs as a percentage of beginning of year allowance:
GA2 Spreadsheet.xlsx
IMG 7609.jpg
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