How to complete the exercise: For this exercise, you will go to the internet to the EDGAR filings at SEC.gov and access January 30, 2019, 10-K (Annual Report) for eBay for the year ended December 31, 2018.

Required Deliverables:

1. Determine what the amount of eBays net account receivable at December 31, 2018, and at December 31, 2017.
2. From Financial Statement Schedule II of its 10-K (Annual Report) lists eBays allowance for doubtful accounts (including authorized credits). For the two years ended December 31, 2018 and 2017, identify its allowance for doubtful accounts (including authorized credits), and then compute it as a percent of gross accounts receivable.
3. Determine the reasonableness of the percentage of gross accounts receivable for eBay. Based on what you know about eBay, do you believe it is reasonable. You need to explain in detail.