Question

32 Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company's 2017 financial statements contain the following information ($ in millions): 2017 2016 $ 4,557 $4,121 Balance sheets Accounts receivable, net Income statements Sales revenue 10 points $36,830 $34,856 02:25:44 A note disclosed that the allowance for uncollectible accounts had a balance of $35 million and $59 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $56 million Assume that all sales are made on a credit basis. Required: 1. What is the amount of gross (total) accounts receivable due from customers at the end of 2017 and 2016? 2. What is the amount of bad debt write-offs during 2017? 3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2017 4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2017 Complete this question by entering your answers in the tabs below. Requided : Required 2 Required 3 Required 4 What is the amount of gross (total) accounts receivable due from customers at the end of 2017 and 2016? (Enter your answers in millions.) 2017 2016 Accounts receivable, gross Rewired?

Answer 1

Requirement 1)

Computation of gross amount of Account receivable 2017 2016 Account Receivable Gross 4592 4180 Less: allowance for uncollect debt 35 59 Account Receivable Net 4557 4121

Requirement 2)

Computation of Bad debts written off Op Bal 59 Add:Bad debts exp for 2017 56 Less: Amount of Bad debts written off 80 Closing bal 35

Requirement 3)

Op bal Account Receivabes (Gross) 4180 Add:Credit sales 36830 Less:Bad debts written off 80 Less:Cash collected from debtor 36338 closing balance 4592

Requirement 4)

Account Receivabes (Net) Account receivable (Net) 4121 Add: credit sales 36830 Less: bad debts exp 56 Less: Account receivable (Net) 4557 Cash collected 36338

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