Adjusting Allowance for Doubtful Accounts and Bad Debts Expense Merck & Company reported the following from its 2019 financial statements. $ millions 2016 2017 2018 2019 Accounts receivable, net $7,018 $6,873 $7,071 $6,778 Allowance for doubtful accounts 195 159 119 86 a. Compute accounts receivable gross for each year. $ millions 2016 2017 2018 2019 Accounts receivable, gross Answer 7213 Answer 7032 Answer 7190 Answer 6864 b. Determine the percentage of allowance to gross account receivables for each year. Round answers to two decimal places (ex: 0.02345 = 2.35%). 2016 2017 2018 2019 % allowance Answer 2.7 Answer 2.26 Answer 1.66 Answer 1.25 c. Assume that we want to reformulate the balance sheet and income statement to reflect a constant percentage of allowance to gross accounts receivables for each year. Compute the four-year average and then reformulate the balance sheet and income statements for each of the four years. Follow the process shown in Analyst Adjustments 5.2 and assume a tax rate