The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 $39 million $ 116 million Provision for doubtful accounts Accounts receivable, net Accounts receivable, gross Allowance for doubtful accounts At Fiscal Year-end At Fiscal Year-end 2014 16,487 million 17,031 million What is the balance in HF's allowance for doubtful accounts at the end of the fiscal years 2015 and 2014, respectively? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). For Fiscal 2015 2015 15,956 million 16,368 million million i For Fiscal 2014 million
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.
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