Chapter 9, Problem 9.11P

Accounts Receivable Disclosure. Using Kellogg Company’s accounts receivable disclosures from Exhibit 9.8 in the text and the following information, answer the questions

(in millions)	2016	2015
Net sales	$13,014	$13,525
Accounts receivable, net	1,231	1,344
Total assets	15,111	15,251

Source Kellogg Company Annual Report, December 2016 http//investor.kelloggs.com/~/media/Files/K/Kellogg-IR/Annual%20Reports/kellogg-2016-ar-10-k.PDF

Required

1. a. How is the carrying value of accounts receivable determined?
2. b. What factors influence management's judgment in its estimate of the amount of collectible receivables'?
3. c. What is the percent of trade receivables to total assets at the end of 2016 and 2015?
4. d. What is the percent of the allowance for uncollectible accounts to total trade receivables in 2016 and 2015? (See Note 19 in 2016 Annual Report)
5. e. What were Kellogg's write-offs of accounts receivable in 2016 and 2015? (See Note 19 in 2016 Annual Report)

SUPPLEMENTAL FINANCIAL STATEMENT DATA

Consolidated Balance Sheet (millions)	2016	2015
Trade receivables	$ 1,106	$1,169
Allowance for doubtful accounts	(8)	(8)
Refundable income taxes	24	27
Other receivables	109	156
Accounts receivable, net	$ 1.231	$1,344

Allowance for doubtful accounts (millions)	2016	2015	2014
Balance at beginning of year	$ 8	$ 7	$ 5
Additions charged to expense	9	4	6
Doubtful accounts charged to reserve	(9)	(3)	(4)
Balance at end of year	$ 8	$ 8	$ 7