Microsoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system.
Question:
Microsoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Microsoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).
According to its Form 10-K, Microsoft recorded Bad Debt Expense of $150 and did not recover any previously written-off accounts during the year ended June 30, 2016.
Required:
1. What amount of accounts receivable was written off during the year ended June 30, 2016?
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 2016, relative to 2015 when the turnover was 5.0?
CorporationA 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...
Step by Step Answer:
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby