Siemens is one of the world€™s largest electrical engineering and electronics companies. Headquartered in Germany, the company has been in business for over 160 years and operates in 190 countries. In a recent annual report, it disclosed the following information concerning its allowance for doubtful accounts (euros in millions denoted as ‚¬):

Required:
1. Record summary journal entries related to the allowance for doubtful accounts for the current year.
2. If Siemens had written off an additional ‚¬10 million of accounts receivable during the period, how would receivables, net, and net income have been affected? Explainwhy.

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Balance at Beginning of Period 993 Charged to Costs and Expenses E213 Amounts Written Off Balance at End of Period 1,005 (201)