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Green Technologies is a leading global end - to - end technology provider, with a portfolio of hardware, software and service solutions. In a recent

Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In
a recent annual report, the balance sheet included the following information ($ in millions):
Current assets:
Receivables, less allowance of $109 in 2020
and $100 in 2019
$12,584$12,471
In addition, the income statement reported sales revenue of $93,160 million 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 $92,868 million. There could
have been significant recoveries of accounts receivable previously written off.
Required:
Compute the following ( $ in millions):
a. The amount of bad debts written off by Green during 2020(Hint. Treat it as a plug in the gross accounts receivable
account).
b. The amount of bad debt expense that Green included in its income statement for 2020(Hint. Treat it as a plug in the
allowance for uncollectible accounts).
c. The approximate percentage that Green used to estimate bad debts for 2020, assuming that it used the income statement
approach.
Suppose that Green had used the direct write-off method to account for bad debts. Compute the following ($ in millions):
a. The accounts receivable information that would be included in the 2020 year-end balance sheet.
b. The amount of bad debt expense that Green would include in its 2020 income statement.
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