Microsoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system.
Question:
According to its Form 10-K, Microsoft recorded Bad Debt Expense of $ 5 and did not recover any previously written-off accounts during the year ended June 30, 2013.
Required:
1. What amount of accounts receivable was written off during the year ended June 30, 2013?
2. What was Microsoft€™s receivables turnover ratio (to one decimal place) in the current year?
3. Does your answer in requirement 2 suggest the collectibility of Accounts Receivable improved (or deteriorated) in 2013, relative to 2012 when the turnover was 4.8?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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