Interpreting Accounts Receivable and Its Footnote Disclosure Following is the current asset section from the W.W. Grainger, Inc., balance sheet.

As of December 31 ($ 000s)	2007	2006	2005
Cash and cash equivalents	$ 113,437	$ 348,471	$ 544,894
Marketable securities at cost, which approximate market value	20,074	12,827	--
Accounts receivable (less allowances for doubtful accounts of $25,830, $18,801 and $18,401, respectively	602,650	566,607	518,625
Inventories, net	946,327	827,254	791,212
Prepaid expenses and other assets	61,666	58,804	54,334
Deferred income taxes	56,663	48,123	76,474
Prepaid income taxes	--	--	--
Total current assets	$ 1,800,817	$ 1,862,086	$ 1,985,539

Grainger reports the following footnote relating to its receivables. Allowance for Doubtful Accounts: The following table shows the activity in the allowance for doubtful accounts.

For Years ended December 31 ($ 000s)	2007	2006	2005
Allowance for doubtful accounts- accounts receivable
Balance at beginning of period	$ 18,801	$ 18,401	$ 23,375
Provision for uncollectable accounts	15,436	6,057	1,326
Write-off of uncollectible accounts, less recoveries	(8,755)	(5,660)	(6,380)
Foreign currency exchange impact	348	3	80
Balance at end of period	$ 25,830	$ 18,801	$ 18,401

(a) What amount do customers owe Grainger at each of the year-ends 2005 through 2007?

($ 000s)	2007	2006	2005
Gross accounts receivable	$Answer	$Answer	$Answer

(b) What percentage of its total accounts receivable does Grainger feel are uncollectible? Hint: Percentage of uncollectible accounts = Allowance for uncollectible accounts/Gross accounts receivable. Round your answers to two decimal places.

($ 000s)	2007	2006	2005
Percentage of uncollectible accounts to gross accounts receivable	Answer%	Answer%	Answer%

(c) What amount of bad debts expense did Grainger report in its income statement for each of the years 2005 through 2007?

($ 000s)	2007	2006	2005
Bad debts expense (titled Provision for Uncollectible Accounts)	$Answer	$Answer	$ Answer

(d) If Grainger had kept its 2007 allowance for uncollectible accounts at the same percentage of gross accounts receivable as it was in 2005, by what amount would its profit have changed (ignore taxes)? HINT: Use rounded answer from part b to calculate. Round answer to the nearest thousands. Profit would Increase or Decrease by how much? Answer($ 000s)