Walmart Inc (WMT) has the following excerpts from their financial statements January 31, 2022 January 31, 2021 Net Receivables * (in $ Millions) 8,280 6,516 *Net Receivable = Gross receivable minus Allowance Walmart’s fiscal year “FY22” is defined as the period between February 1, 2021 – January 31, 2022 Gross (Accounts) Receivables, January 31, 2022: $9,265 Million Gross Receivables, January 31, 2021: $7,421 Million Accounts Written-off in FY 22 $221 Million 2% of credit sales is assumed to be uncollectable CALCULATE The ending balance of Allowance for uncollectable accounts as of January 31, 2022 Bad Debt Expense for the fiscal year ending on January 31, 2022. Collections during FY22
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.
Walmart Inc (WMT) has the following excerpts from their financial statements
|
|
January 31, 2022 |
January 31, 2021 |
|
Net Receivables * (in $ Millions) |
8,280 |
6,516 |
*Net Receivable = Gross receivable minus Allowance
Walmart’s fiscal year “FY22” is defined as the period between February 1, 2021 – January 31, 2022
Gross (
Gross Receivables, January 31, 2021: $7,421 Million
Accounts Written-off in FY 22 $221 Million
2% of credit sales is assumed to be uncollectable
CALCULATE
The ending balance of Allowance for uncollectable accounts as of January 31, 2022
Collections during FY22
Step by step
Solved in 4 steps
