Chapter 8

The following information is taken from the 2015 annual report to shareholders of Hewlett-Packard (HP) Co.

	For Fiscal 2015	For Fiscal 2014
Provision for doubtful accounts	$ 46 million	$25 million
	At Fiscal Year-end 2015	At Fiscal Year-end 2014
Accounts receivable, net	13,363 million	13,832 million
Accounts receivable, gross	13,552 million	14,064 million

A)What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2015 and 2014, respectively?

B)What kind of account is the provision for doubtful accounts in HP's financial statements?

C)Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015.

D)For each posted entry in the allowance account during 2015, prepare the journal entry.