Question
Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 (in millions) 2015 2014 Accounts receivable $13,363 $13,832 Footnotes to the company's 10-K
Hewlett-Packard Company reports the following in its 2015 10-K report.
October 31
(in millions)
2015
2014
Accounts receivable
$13,363
$13,832
Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31
(in millions)
2015
2014
2013
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period
$232
$332
$464
Provision for doubtful accounts
46
25
23
Deductions, net of recoveries
(89)
(125)
(155)
Balance, end of period
$189
$232
$332
(a) What is the gross amount of accounts receivables for Hewlett-Packard in fiscal 2015 and 2014?
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2015 and 2014? (Round your answers to two decimal places.)
(c)What amount of bad debts expense did Hewlett-Packard report each year 2013 through 2015 (ignore increase in allowance from acquisitions)? What amount was actually written off?
(d)Compute Hewlett-Packard's write-offs as a percentage of the allowance account at the beginning of the year.
(Round your answers to two decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started