Adjusting Allowance for Doubtful Accounts and Bad Debts Expense Merck & Company reported the following from its 2016 financial statements. $ millions 2013 2014 2015 2016 Accounts receivable, net $7,682 $7,121 $6,981 $7,511 Allowance for doubtful accounts 154 163 175 213 a. Compute accounts receivable gross for each year. $ millions Accounts receivable, gross $ % allowance 2013 0% X 0 * $ 0% * 2014 W 0 x $ b. Determine the percentage of allowance to gross account receivables for each year. Round answers to two decimal places (ex: 0.02345 = 2.35%). 2013 2014 2015 2015 0% * 0x $ 2016 2016 0% * 0 x

Adjusting Allowance for Doubtful Accounts and Bad Debts Expense Merck \& Company reported the following from its 2016 financial statements. a. Compute accounts receivable gross for each year. b. Determine the percentage of allowance to gross account receivables for each year. Round answers to two decimal places (ex: 0.02345=2.35% ). c. Assume that we want to reformulate the balance shect and income statement to reflect a constant percentage of allowance to gross accounts recevables for each year. Compute the average and then reformulate the balance sheet and incorne statements for each of the four years. Folow the process shown in Analyst adjustments 5.2 and assume a tax rate of 35%. Four year average of percentage of allowance to gross accounts receivables: Round answer to two decimal places (ex: 0.02345 - 2.35% ) Reformulate the balance sheet and income statements. - Use rounded answer above for computations, then round answers to one decimal place. - Use negative signs with answers to indicate the adjustment decreases an account. Adjusting Allowance for Doubtful Accounts and Bad Debts Expense Merck \& Company reported the following from its 2016 financial statements. a. Compute accounts receivable gross for each year. b. Determine the percentage of allowance to gross account receivables for each year. Round answers to two decimal places (ex: 0.02345=2.35% ). c. Assume that we want to reformulate the balance shect and income statement to reflect a constant percentage of allowance to gross accounts recevables for each year. Compute the average and then reformulate the balance sheet and incorne statements for each of the four years. Folow the process shown in Analyst adjustments 5.2 and assume a tax rate of 35%. Four year average of percentage of allowance to gross accounts receivables: Round answer to two decimal places (ex: 0.02345 - 2.35% ) Reformulate the balance sheet and income statements. - Use rounded answer above for computations, then round answers to one decimal place. - Use negative signs with answers to indicate the adjustment decreases an account