Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2015 financial statements contain the following information (in millions): 2015 2014

Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2015 financial statements contain the following information (in millions):

2015 2014
Balance sheets:
Accounts receivable, net $ 3,358 $ 3,434
Income statements:
Sales revenue $ 30,601 $ 27,799

A note disclosed that the allowance for uncollectible accounts had a balance of $78 million and $78 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $20 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 2015 and 2014? 2. What is the amount of bad debt write-offs during 2015? 3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2015. 4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2015.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Q And A 2016

Authors: ACA Simplified

1st Edition

1523200464, 978-1523200467

More Books

Students explore these related Accounting questions