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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 annual report, the balance
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): In addition, the income statement reported sales revenue of $102,214 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 $101,868 million. There could have been significant recoveries of accounts receivable previously written off. Required: 1. 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. 2. 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 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. Note: Enter your answers in millions. Round your percentage answer to 3 decimal places. Complete this question by entering your answers in the tabs below. Suppose that Green had used the direct write-off method to account for bad debts, calculate the accounts receivable information that would be included in the 2020 year-end balance sheet. Note: Enter your answers in millions. Suppose that Green had used the direct write-off method to account for bad debts, calculate the amount of bad debt expense that Green would include in its 2020 income statement. Note: Enter your answers in millions
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