Interpreting the Accounts Receivable Note

HP Inc. reports the following in a recent $10-$K$.$

$ millions Current Year Prior Year Two Years Prior

Accounts receivable, net $$10,226$ $$8,828$ $$8,228$

Revenue $116,944104,11296,476$

Notes to the company$$s $10-$K provide the following additional information relating to its allowance for doubtful accounts.

For Fiscal Years Ended October $31($$ millions$)$ Current Year Prior Year Two Years Prior

Allowance for doubtful accounts $-$ accounts receivable

Balance, beginning of period $$202$ $$214$ $$160$

Provision for doubtful accounts $11460130$

Deductions, net of recoveries $(58)(72)(76)$

Balance, end of period $$258$ $$202$ $$214$

a$.$ What is the gross amount of accounts receivables for HP in the current and two prior years?

$ millions Current Year Prior Year Two Years Prior

Accounts receivable, gross Answer $1$

$10484$

Answer $2$

$9030$

Answer $3$

$8442$

b$.$ What is the percentage of the allowance for doubtful accounts to gross accounts receivable the current and two prior years?

Note: Do not use a negative sign.

$ millions Numerator Denominator $\%$ of Allowance for Doubtful Accounts to Gross Accounts Receivable

Current Year: Answer $4$

$258$

Answer $5$

$10484$

$2\mathrm{.}46$

Prior Year: Answer $6$

$202$

Answer $7$

$9030$

$2\mathrm{.}24$

Two Years Prior: Answer $8$

$214$

Answer $9$

$8442$

$2\mathrm{.}53$

c$.$ What amount of bad debts expense did HP report each year? Compute the ratio of bad debts expense to the accounts receivable actually written off.

Note: Do not use a negative sign.

$ millions Bad Debt Expense

Current Year: Answer $10$

$114$

Prior Year: Answer $11$

$60$

Two Years Prior: Answer $12$

$130$

$ millions Numerator Denominator Ratio of Bad Debt Expense to Accounts Receivable Actually Written Off

Current Year: Answer $13$

$58$

Answer $14$

$202$

$0\mathrm{.}29$

Prior Year: Answer $15$

$72$

Answer $16$

$214$

$0\mathrm{.}34$

Two Years Prior: Answer $17$

$76$

Answer $18$

$160$

$0\mathrm{.}48$

d$.$ Compute common$-$size bad debt expense.

Note: Do not use a negative sign.

$ millions Numerator Denominator Common$-$Size Bad Debt Expense

Current Year: Answer $19$

Answer $20$

Prior Year: Answer $21$

Answer $22$

Two Years Prior: Answer $23$

Answer $24$

e$.$ Compute the days sales outstanding $($DSO$)$ for the two most recent fiscal years.

Note: Round answers to the nearest day, if applicable.

Note: Do not round intermediate calculations, if applicable.

Days Sales Outstanding $($DSO$)$

Current Year: Answer $25$

Prior Year: Answer $26$

f$.$ Given your analysis of the allowance, bad debt, and DSO, are HP$$s accounts receivable of low, medium, or high quality?

HP$\text{'}$s A$/$R are of Answer $27$

quality.