6 E6-19 (Algo) Inferring Bad Debt Write-Offs and Cash Collections from Customers LO6-2 Macrosoft develops, produces, and markets a wide range of computer software. On its recent financial statements, Macrosoft reported the following information about net sales revenue and accounts receivable (amounts in millions). 5 points Accounts receivable, net of allowances of $150 and $117 Net sales revenue Current Prior Year Year $ 14,189 $ 10,438 61,920 52,522 eBook a Print According to its Form 10-K, Macrosoft recorded bad debt expense of $96 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) References Required: 1. What amount of bad debts was written off during the current year? 2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount of bad debts was written off during the current year? (Enter your answers in millions not in dollars.) Allowance for Doubtful Accounts 117 Beg. bal. 63 96 Write-offs 150 End. bal. 6 ITIUVIVUUSMUULIUM pivuuvu, VIIM TURUUTTUU Turry VI Curr Tuivi JUILTUU VIII IIIIIIIVIUI JUULIIVITITIUVIVUILT TILL the following information about net sales revenue and accounts receivable amounts in millions), Accounts receivable, net of allowances of $150 and $117 Net sales revenue Current Prior Year Year $ 14,189 $ 10,438 61,920 52,522 ts According to its Form 10-K, Macrosoft recorded bad debt expense of $96 and there were no bad debt recoveries during the current year. (Hint Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year? 2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. (Enter your answers in millions not in dollars.) Beg. bal. Net sales Accounts Receivable (Gross) 10,555 61,920 63 Write-offs Cash collections End. bal. 72,412