Amdahl Corporation manufactures large-scale, high performance computer systems. In a recent annual report, the balance sheet included the following information (dollars in thousands) Previous Year Current Year Current assets: Receivables, net of allowances of $5,642 and $7,250 in the previous year $510,944 $587,240 In addition, the income statement reported sales revenue of $2,219,755 ($ in thousands) 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 $2,290,065 ($ in thousands). There were no recoveries of accounts receivable previously written off. Required: 1. Compute the following (dollar amounts in thousands) a. The amount of uncollectibles written off by Amdahl during the current year b. The amount of bad debt expense that Amdahl would include in its income statement for the current year. c. The approximate percentage that Amdahl used to estimate uncollectibles for the current year, assuming that it uses the income statement approach 2. Suppose that Amdahl had used the direct write-off method to account for uncollectibles. Compute the following (dollars in thousands) a. The accounts receivable information that would be included in the year-end balance sheet. b. The amount of bad debt expense that Amdahl would include in its income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1Req 2A Req 2B Calculate the amount of uncollectibles written off by Amdahl during the current year, bad debt expense that Amdahl would include in its income statement for the current year and the approximate percentage that Amdahl used to estimate uncollectibles for the current year, assuming that it uses the income statement approach. (Enter your answer in thousands and round your percentage answer to 1 decimal place.) Show less Uncollectibles b. Bad debt expense ercentage written off Approximate Req Req 2A Complete this question by entering your answers in the tabs below. Req 1Req 2A Req 2B Suppose that Amdahl had used the direct write-off method to account for uncollectibles, calculate the accounts receivable information that would be included in the year-end balance sheet. (Enter your answers in thousands.) Show less urrent Previous ear year Current assets Receivables Req 1 Req 2B> Complete this question by entering your answers in the tabs below. Req 1 Req 2AReq 2B Suppose that Amdahl had used the direct write-off method to account for uncollectibles, calculate the amount of bad debt expense that Amdahl would include in its income statement for the current year. (Enter your answer in thousands.) Show less Bad debt expense Req 2A Req 2B
