7-2 (Algo) Uncollectible accounts; Green Technologies [LO7-5] Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): 2020 2019 Current assets: Receivables, less allowance of $169 in 2020 and $160 in 2019 $ 12,984 $ 12,871 In addition, the income statement reported sales revenue of $97,184 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $96,868 million. There could have been significant recoveries of accounts receivable previously written off. Required: 1. Compute the following ($ in millions): a. The amount of bad debts written off by Green during 2020 (Hint. Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint. Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. 2. Suppose that Green had used the direct write-off method to account for bad debts. Compute the following ($ in millions): a. The accounts receivable information that would be included in the 2020 year-end balance sheet. b. The amount of bad debt expense that Green would include in its 2020 income statement. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the following ($ in millions): a. The amount of bad debts written off by Green during 2020 (Hint: Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint: Treat it as a plug in the allowance for uncollectible accounts). c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement approach. Note: Enter your answers in millions. Round your percentage answer to 3 decimal places. a. Bad debts written off or reinstated b. Bad debt expense c. Income statement approach $ 194 $ 203 0.002 % < Req 1 Req 2A > Show less Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Suppose that Green had used the direct write-off method to account for bad debts, calculate the amount of bad debt expense that Green would include in its 2020 income statement. Note: Enter your answers in millions. Bad debt expense < Req 2A Req 2B > Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Suppose that Green had used the direct write-off method to account for bad debts, calculate the accounts receivable information that would be included in the 2020 year-end balance sheet. Note: Enter your answers in millions. 2020 Current assets: Receivables 2019 < Req 1 Req 2B >