Chapter 9, Problem 3BTN

Access eBay’s February 6, 2017, filing of its 10-K report for the year ended December 31, 2016, at SEC.gov.

Required

1. 1. What is the amount of eBay’s net accounts receivable at December 31, 2016, and at December 31, 2015?
2. 2. “Financial Statement Schedule II” of its 10-K report lists eBay’s allowance for doubtful accounts (including authorized credits). For the two years ended December 31, 2016 and 2015, identify its allowance for doubtful accounts (including authorized credits), and then compute it as a percent of gross accounts receivable.
3. 3. Do you believe that these percentages are reasonable based on what you know about eBay? Explain.