Question
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2009 10-K report. October 31 (in millions) 2009 2008 Accounts receivable, net
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2009 10-K report.
October 31 (in millions) | 2009 | 2008 |
---|---|---|
Accounts receivable, net | $16,537 | $16,928 |
HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31 (in millions) | 2009 | 2008 | 2007 |
---|---|---|---|
Allowance for doubtful accounts-accounts receivable | |||
Balance, beginning of period | $ 553 | $ 226 | $ 220 |
Increase in allowance from acquisition | -- | 245 | 3 |
Addition of bad debts provision | 282 | 226 | 32 |
Deductions, net of recoveries | (206) | (144) | (29) |
Balance, end of period | $ 629 | $ 553 | $ 226 |
(a) What is the gross amount of accounts receivables for HPQ in fiscal 2009 and 2008?
($ millions) | 2009 | 2008 |
---|---|---|
Gross accounts receivable | Answer | Answer |
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2009 and 2008? (Round your answers to two decimal places.)
($ millions) | 2009 | 2008 |
---|---|---|
Percentage of uncollectible accounts to gross accounts receivable | Answer | Answer |
(c)What amount of bad debts expense did HPQ report each year 2007 through 2009? What amount was actually written off?
($ millions) | 2009 | 2008 | 2007 |
---|---|---|---|
Bad debt expense | Answer | Answer | Answer |
Amount actually written off | Answer | Answer | Answer |
(d)Compute HPQ's write-offs as a percentage of the allowance account at the beginning of the year (Round your answers to two decimal places). 2009 write-offs as a percentage of beginning of year allowance: Answer% 2008 write-offs as a percentage of beginning of year allowance: Answer%
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