Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2004 10-K report.

October 31 (in millions)	2005	2004
Accounts receivable, net	$9,903	$10,226

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)	2005	2004	2003
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period	$ 286	$ 347	$ 410
Increase in allowance from acquisition	--	9	--
Addition of bad debts provision	17	(6)	29
Deductions, net of recoveries	(76)	(64)	(92)
Balance, end of period	$ 227	$ 286	$ 347

(a) What is the gross amount of accounts receivables for HPQ in fiscal 2005 and 2004?

($ millions)	2005	2004
Gross accounts receivable	Answer	Answer

(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2005 and 2004? (Round your answers to two decimal places.)

($ millions)	2005	2004
Percentage of uncollectible accounts to gross accounts receivable	Answer%	Answer%

(c)What amount of bad debts expense did HPQ report each year 2003 through 2005?

($ millions)	2005	2004	2003
Bad debt expense	$Answer	$Answer	$Answer
Amount actually written off	$Answer	$Answer	$Answer

Which of the following statements describes how bad debts expense compares with the amounts of its accounts receivable actually written off?

Generally, HP has overestimated its accruals, which has deflated profit by the over-accrual of bad debts.

Generally, HP has underestimated its accruals, which has inflated profit by the under-accrual of bad debts.

The difference between bad debt expense and write-off during the three years is insignificant so it appears that profit has been fairly stated.

The difference between bad debt expense and write-off during the three years has inflated HPQ's cash flows reported.

(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). 2005 write-offs as a percentage of beginning of year allowance: Answer% 2004 write-offs as a percentage of beginning of year allowance: Answer%