Interpreting Accounts Receivable and Related Footnote Disclosure Following is information from the Fitbit Inc. financial statements. $ thousands Revenue. Accounts receivable, net Dec. 31, 2018 $1,511,983 414,209 Dec. 31, 2017 $1,615,519 406,019 Dec. 31, 2016 $2,169,461 477,825 2018 2017 2016 Allowance for Doubtful Accounts ($ thousands) Beginning balance Increases Write-offs Ending balance.... $9,229 56 (5,543) $3,742 282 30,551 (21,604) $ 9,229 $1,825 339 (1,882) $ 282 Customer Bankruptcy In September 2017, Wynit Distribution filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. Wynit was the Company's largest customer, his- torically representing 11% of total revenue during the six months ended July 1, 2017 and 19% of total accounts receivables as of July 1, 2017. In connection with Wynit's bankruptcy filing, the Company believed that the collectability of the product shipments to Wynit during the third quarter of 2017 was not reasonably assured. However, as of July 1, 2017, collectability of accounts receivables from Wynit was reasonably assured. The Company ceased to recognize revenue from Wynit, which totaled $8.1 million during the third quarter of 2017. Additionally, the Company recorded a charge of $35.8 million during the third quarter ended September 30, 2017 comprised of cost of revenue of $5.5 million as- sociated with shipments to Wynit in the third quarter of 2017 and bad debt expense of $30.3 million associated with all of Wynit's outstanding accounts receivables. Required en customer ketaren 2016 through 20142 Whateverrentag on its cofectible: Hint. Pereentage of uncollections Allowance c. What amountet tau debis expense die tuit repetim 20189 Is this a significant experieulete the How might we adjust our analyses in parts a through c to reflect information about Wynit Distribution? e. Calculate the repeat took to collect its receivables in Overall, what is our assessment of the quality of Fitbit's accounts receivable? Interpreting Accounts Receivable and Related Footnote Disclosure Following is information from the Fitbit Inc. financial statements. $ thousands Revenue. Accounts receivable, net Dec. 31, 2018 $1,511,983 414,209 Dec. 31, 2017 $1,615,519 406,019 Dec. 31, 2016 $2,169,461 477,825 2018 2017 2016 Allowance for Doubtful Accounts ($ thousands) Beginning balance Increases Write-offs Ending balance.... $9,229 56 (5,543) $3,742 282 30,551 (21,604) $ 9,229 $1,825 339 (1,882) $ 282 Customer Bankruptcy In September 2017, Wynit Distribution filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. Wynit was the Company's largest customer, his- torically representing 11% of total revenue during the six months ended July 1, 2017 and 19% of total accounts receivables as of July 1, 2017. In connection with Wynit's bankruptcy filing, the Company believed that the collectability of the product shipments to Wynit during the third quarter of 2017 was not reasonably assured. However, as of July 1, 2017, collectability of accounts receivables from Wynit was reasonably assured. The Company ceased to recognize revenue from Wynit, which totaled $8.1 million during the third quarter of 2017. Additionally, the Company recorded a charge of $35.8 million during the third quarter ended September 30, 2017 comprised of cost of revenue of $5.5 million as- sociated with shipments to Wynit in the third quarter of 2017 and bad debt expense of $30.3 million associated with all of Wynit's outstanding accounts receivables. Required en customer ketaren 2016 through 20142 Whateverrentag on its cofectible: Hint. Pereentage of uncollections Allowance c. What amountet tau debis expense die tuit repetim 20189 Is this a significant experieulete the How might we adjust our analyses in parts a through c to reflect information about Wynit Distribution? e. Calculate the repeat took to collect its receivables in Overall, what is our assessment of the quality of Fitbit's accounts receivable
