Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. Ina recent annual report, the balance sheet included the following information ($ in millions):Current assets:Receivables, less allowance of $289 in 2020 and$280 in 2019Req 1In addition, the income statement reported sales revenue of $105,232 million for the current year. All sales are made on a credit basis.The statement of cash flows indicates that cash collected from customers during the current year was $104,868 million. There couldhave been significant recoveries of accounts receivable previously written off.Required:1. Compute the following ($ in millions):Req 2A2020a. The amount of bad debts written off by Green during 2020 (Hint. Treat it as a plug in the gross accounts receivableaccount).b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint. Treat it as a plug in theallowance for uncollectible accounts).c. The approximate percentage that Green used to estimate bad debts for 2020, assumingapproach.2. Suppose that Green had used the direct write-off method to account for bad debts. Compute the following ($ in millions):a. The accounts receivable information that would be included in the 2020 year-end balance sheet.b. The amount of bad debt expense that Green would include in its 2020 income statement.Complete this question by entering your answers in the tabs below.$ 13,784Req 2Ba. Bad debts written off or reinstatedb. Bad debt expensec. Income statement approach2019$ 13,671%Compute the following ($ in millions):a. The amount of bad debts written off by Green during 2020 (Hint: Treat it as a plug in the gross accounts receivableaccount).b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint: Treat it as a plug in theallowance for uncollectible accounts).used the income statementc. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statementapproach.Note: Enter your answers in millions. Round your percentage answer to 3 decimal places.Show less

Bad Debt: It is the amount of money owed to a customer that they are unable to collect.Gross…

Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowance of $289 in 2020 and $280 in 2019 Req 1 In addition, the income statement reported sales revenue of $105,232 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $104,868 million. There could have been significant recoveries of accounts receivable previously written off. Required: 1. Compute the following ($ in millions): Req 2A 2020 a. The amount of bad debts written off by Green during 2020 (Hint. Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint. Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. 2. Suppose that Green had used the direct write-off method to account for bad debts. Compute the following ($ in millions): a. The accounts receivable information that would be included in the 2020 year-end balance sheet. b. The amount of bad debt expense that Green would include in its 2020 income statement. Complete this question by entering your answers in the tabs below. $ 13,784 Req 2B a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach 2019 $ 13,671 % Compute the following ($ in millions): a. The amount of bad debts written off by Green during 2020 (Hint: Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint: Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. Note: Enter your answers in millions. Round your percentage answer to 3 decimal places. Show less

Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowance of $289 in 2020 and $280 in 2019 Req 1 In addition, the income statement reported sales revenue of $105,232 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $104,868 million. There could have been significant recoveries of accounts receivable previously written off. Required: 1. Compute the following ($ in millions): Req 2A 2020 a. The amount of bad debts written off by Green during 2020 (Hint. Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint. Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. 2. Suppose that Green had used the direct write-off method to account for bad debts. Compute the following ($ in millions): a. The accounts receivable information that would be included in the 2020 year-end balance sheet. b. The amount of bad debt expense that Green would include in its 2020 income statement. Complete this question by entering your answers in the tabs below. $ 13,784 Req 2B a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach 2019 $ 13,671 % Compute the following ($ in millions): a. The amount of bad debts written off by Green during 2020 (Hint: Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint: Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. Note: Enter your answers in millions. Round your percentage answer to 3 decimal places. Show less

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 26E

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