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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.image text in transcribed

Gross Accounts Receivable Beg. bal. Sales Write-offs Bad debts expense End. bal. 3,280 3,356 30,60127,799 20 20 2,726

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