Hewlett-Packard Company (HP) reports the following in its \(200710-\mathrm{K}\) report.

HP's footnotes to its \(10-\mathrm{K}\) provide the following additional information relating to its allowance for doubtful accounts.

a. What is the gross amount of accounts receivables for HP in fiscal 2007 and 2006?

b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006 ?

c. What amount of bad debts expense did HP report each year 2005 through 2007? How does bad debts expense compare with the amounts of its accounts receivable actually written off? (Identify the amounts and explain.)

d. Explain the changes in the allowance for doubtful accounts from 2005 through 2007. Does it appear that HP increased or decreased its allowance for doubtful accounts in any particular year beyond what seems reasonable?

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October 31 (In millions) Accounts receivable, net of allowance for doubtful accounts of $226 and $220 as of 2007 and 2006, respectively. 2007 2006 $13,420 $10,873