Question
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 2015: $ 3,358 2014: $ 3,434 Income statements: Sales revenue 2015: $ 30,601 2014: $ 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.
Gross Accounts Receivable Beg. bal. Sales Write-offs Bad debts expense End. bal. 3,280 3,356 30,60127,799 20 20 2,726Step by Step Solution
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