Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

c. What amount of bad debts expense did Grainger report in its income statement for each of the years 2013 through 2015? d. Explain the

image text in transcribed

c. What amount of bad debts expense did Grainger report in its income statement for each of the years 2013 through 2015?

d. Explain the change in the balance of the allowance for uncollectible accounts since 2013. Specifically, did the allowance increase or decrease as a percentage of gross accounts receivable, and why?

Interpreting Accounts Receivable and Related Footnote Disclosure Following is the current asset section from the W.W. Grainger Inc. balance sheet. As of December 31 ($ 000s) 2015 2014 2013 $ 290,136 226,644 430,644 Cash and cash equivalents. . . . Accounts receivable (less allowances for doubtful accounts of $22,288, $22,121 and $20,096, 1,209,641 1,172,924 1,101,656 1,414,177 1,356,396 1,305,520 85,670102,669 115,331 0 61,387 75,819 15,315 $3,048,642 $2,967,549 $3,044,285 Prepaid expenses and other assets.. . . . . .. Deferred income taxes. . 49,018 47,529 Grainger reports the following footnote relating to its receivables. reports the following footmote relating to its receivables The following table shows the activity in the allowance Allowance for Doubtful Accounts for doubtful accounts. For Years Ended December 31 ($ 000s) 2015 2014 2013 . $22,121 $20,096 $19,449 8,855 Write-off of uncollectible accounts, net of recoveries. . (10,495) 9,628) (7,942) 266) $22,288 $22,121 $20,096 Balance at beginning of period Business acquisitions, foreign currency and other. 481 (1,292)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Management

Authors: Paresh Shah

2nd Edition

0198077033, 978-0198077039

More Books

Students also viewed these Accounting questions