Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. In a recent annual report, Microsoft reported the following information about trade receivables and net sales revenue.

According to its annual report, Microsoft recorded bad debt expense of \(\$ 360\) and did not reinstate any previously written-off accounts during year 2.

Required:
1. What amount of bad debts was written off during year 2 ?
2. Assuming that all of Microsoft's sales during the period were on open account, compute the amount of cash collected from customers for year 2.

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Trade receivable, net of allowances of $451 and $153 Net revenues Year 2 $11,192 58,437 Year 1 $13,589 60,420