Hewlett-Packard Company (HPQ) reports the following in its 2012 10-K report. HPQ footnotes to its 10-K provide
Question:
Hewlett-Packard Company (HPQ) reports the following in its 2012 10-K report.
HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.
a. What is the gross amount of accounts receivables for HPQ in fiscal 2012 and 2011 ?
b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2012 and 2011 ?
c. What amount of bad debts expense did HPQ report each year 2010 through 2012 (ignore increase in allowance from acquisitions)? 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 2010 through 2012. Does it appear that HPQ increased or decreased its allowance for doubtful accounts in any particular year beyond what seems reasonable?
Step by Step Answer:
Financial And Managerial Accounting For MBAs
ISBN: 9781618533593
6th Edition
Authors: Peter D. Easton