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Amdahl Corporation manufactures large - scale, high performance computer systems. In a recent ann al report, the balance sheet included the following information: Current Year
Amdahl Corporation manufactures largescale, high performance computer systems. In a recent annal report, the balance sheet included the following information:
Current Year Previous Year
Current assets: Receivables, net of allowances of $ and $ in the previous year
$$
In addition, the income statement reported sales revenue of $ 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 $ There were no recoveries of accounts receivable previously written off.
Answer the following questions DO NOT enter commas nor Dollar signs $ nor percentages :
Compute the amount of uncollectibles written off by Amdahl during the current year. $
Compute the amount of bad debt expense that Amdahl would include in its income statement for the current year. $
What is the approximate percentage that Amdahl used to estimate uncollectibles for the current year calculated as a percentage of sales?
Suppose that Amdahl had used the direct writeoff method to account for uncollectibles. Compute the accounts receivable information that would be included in the yearend balance sheet. $
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