Question
nterpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2012 10-K report. Accounts receivable, net $16,407 $18,224 HPQ footnotes to its
nterpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2012 10-K report.
Accounts receivable, net | $16,407 | $18,224 |
HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.
Allowance for doubtful accounts-accounts receivable | |||
Balance, beginning of period | $ 470 | $ 525 | $ 629 |
Increase in allowance from acquisition | -- | 27 | 7 |
Addition of bad debts provision | 100 | 23 | 80 |
Deductions, net of recoveries | (106) | (105) | (191) |
Balance, end of period | $ 464 | $ 470 | $ 525 |
(a) What is the gross amount of accounts receivables for HPQ in fiscal 2012 and 2011?
Gross accounts receivable | Answer 16,871 | Answer 18,694 |
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2012 and 2011? (Round your answers to two decimal places.)
Percentage of uncollectible accounts to gross accounts receivable | Answer % ?? | Answer %?? |
(c)What amount of bad debts expense did HPQ report each year 2010 through 2012 (ignore increase in allowance from acquisitions)? What amount was actually written off?
Bad debt expense | $Answer 100 | $Answer 23 | $Answer 80 |
Amounts actually written off | $Answer 106 | $Answer 105 | $Answer 191 |
(d)Compute HPQ's write-offs as a percentage of the allowance account at the beginning of the year.
(Round your answers to two decimal places)
2012 write-offs as a percentage of beginning of year allowance:
Answer???
%
2011 write-offs as a percentage of beginning of year allowance:
Answer????
%
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