E6-19 (Algo) Inferring Bad Debt Write-Offs and Cash Collections from Customers LO6-2 Macrosoft develops, produces, and markets a wide range of computer software. On its recent financial statements, Macrosoft reported the following information about net sales revenue and accounts receivable amounts in millions). Accounts receivable, net of allowances of $137 and $131 Net sales revenue Prior Current Year Year $ 13,489 $ 12,138 52,222 60,620 According to its Form 10-K, Macrosoft recorded bad debt expense of $101 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year? 2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount of bad debts was written off during the current year? (Enter your answers in millions not in dollars.) Allowance for Doubtful Accounts 131 Beg. bal. 101 Bad debt expense Write-offs 232 End. bal. E6-19 (Algo) Inferring Bad Debt Write-Offs and Cash Collections from Customers LO6-2 Macrosoft develops, produces, and markets a wide range of computer software. On its recent financial statements, Macrosoft reported the following information about net sales revenue and accounts receivable amounts in millions). Accounts receivable, net of allowances of $137 and $131 Net sales revenue Current Year $ 13,489 $ 60,620 Prior Year 12,138 52,222 According to its Form 10-K, Macrosoft recorded bad debt expense of $101 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: 1. What amount of bad debts was written off during the current year? 2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. (Enter your answers in millions not in dollars.) Beg. bal. Net sales Accounts Receivable (Gross) 12,239 60,620 Cash collections Write-offs End. bal. 72,859