Question
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2017 financial statements contain the following information ($ in millions): 2017
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2017 financial statements contain the following information ($ in millions):
2017 | 2016 | ||||
Balance sheets: | |||||
Accounts receivable, net | $ | 4,007 | $ | 3,571 | |
Income statements: | |||||
Sales revenue | $ | 35,280 | $ | 33,306 | |
A note disclosed that the allowance for uncollectible accounts had a balance of $25 million and $49 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $46 million. Assume that all sales are made on a credit basis. Required: 1. What is the amount of gross (total) accounts receivable due from customers at the end of 2017 and 2016? 2. What is the amount of bad debt write-offs during 2017? 3. Analyze changes in the following Accounts Receivable (gross) T-account to calculate the amount of cash received from customers during 2017. 4. Analyze changes in the following Accounts Receivable (net) T-account to calculate the amount of cash received from customers during 2017.
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