Interpreting Accounts Receivable and Uncollectible Accounts $($FSET$)$

Mattel, Inc. designs, manufactures, and markets a broad variety of toy products worldwide that are sold to its customers and directly to consumers. The company$$s brands include American Girl, Fisher$-$Price, Hot Wheels, and Barbie. The following information is taken from the company$$s annual report for its fiscal year ending December $31,2019.$

$($$ millions$)201920182017$

Accounts receivable $$954\mathrm{.}9$ $$992\mathrm{.}1$ $$1,150\mathrm{.}1$

Allowance for doubtful accounts $18\mathrm{.}522\mathrm{.}025\mathrm{.}4$

Accounts receivable, net $936\mathrm{.}4970\mathrm{.}11124\mathrm{.}7$

Activity in the allowance for doubtful accounts for the past three fiscal years is as follows:

$($$ millions$)201920182017$

Balance at beginning of year $$22\mathrm{.}0$ $$25\mathrm{.}4$ $$21\mathrm{.}4$

Charged to income $140\mathrm{.}917\mathrm{.}6$

Deductions$*4\mathrm{.}544\mathrm{.}313\mathrm{.}6$

Allowance at end of year $18\mathrm{.}52225\mathrm{.}4$

$*$Includes write$-$offs, recoveries of previous write$-$offs, and currency translation adjustments.

The company$$s revenues were $$4,504\mathrm{.}6$ million and $$4,514\mathrm{.}8$ million for fiscal years $2019$ and $2018,$ respectively.

a$.$ What amount did the company report as accounts receivable, net in its December $31,2019,$ balance sheet? $Answer $1$

$936\mathrm{.}4$

million

b$.$ Report $(1)$ bad debts expense and $(2)$ write$-$offs of uncollectible accounts in fiscal $2019$ using the financial statement effects template. $($Assume that Deductions did not include recoveries or foreign currency adjustments.$)$

c$.$ Assume that the company experienced a $$0\mathrm{.}5$ million recovery of a previously written$-$off receivable. Report the transaction using the financial statement effects template.

$$ Note: Use negative signs with your answers, when appropriate.

$$ Note: Select $"$N$/$A$"$ as your answer if a part of the accounting equation is not affected.

$$ Note: Record amounts in millions, rounded to one decimal place.

Amounts in $ millions Balance Sheet Income Statement

Cash Noncash Contra Contributed Earned Net

Transaction Asset $+$ Assets $-$ Assets $=$ Liabilities $+$ Capital $+$ Capital Revenue $-$ Expenses $=$ Income

b $(1)$ Bad debts expense. Answer $2$

$0$

Answer $3$

$0$

Answer $4$

$0$

Answer $5$

$0$

Answer $6$

$0$

Answer $7$

Answer $8$

Answer $9$

Answer $10$

b $(2)$ Write$-$off of uncollectible accounts. Answer $11$

$0$

Answer $12$

$0$

Answer $13$

$0$

Answer $14$

Answer $15$

Answer $16$

c$.$ Reinstate account previously written off. Answer $17$

$0$

Answer $18$

$0$

Answer $19$

$0$

Answer $20$

Answer $21$

Answer $22$

Collect reinstated account. Answer $23$

$0$

Answer $24$

$0$

Answer $25$

$0$

Answer $26$

$0$

Answer $27$

Answer $28$

Answer $29$

Total

$0$

$0$

$0$

$0$

$0$

$0$