nterpreting the Accounts Receivable Note

HP Inc. reports the following in a recent $10-$K$.$

$ millions Current Year Prior Year Two Years Prior

Accounts receivable, net $$5,113$ $$4,414$ $$4,114$

Revenue $58,47252,05648,238$

Notes to the company$$s $10-$K provide the following additional information relating to its allowance for doubtful accounts.

For Fiscal Years Ended October $31($$ millions$)$ Current Year Prior Year Two Years Prior

Allowance for doubtful accounts $-$ accounts receivable

Balance, beginning of period $$101$ $$107$ $$80$

Provision for doubtful accounts $573065$

Deductions, net of recoveries $(29)(36)(38)$

Balance, end of period $$129$ $$101$ $$107$

a$.$ What is the gross amount of accounts receivables for HP in the current and two prior years?

$ millions Current Year Prior Year Two Years Prior

Accounts receivable, gross Answer $1$

$101$

Answer $2$

$107$

Answer $3$

$80$

b$.$ What is the percentage of the allowance for doubtful accounts to gross accounts receivable the current and two prior years?

Note: Do not use a negative sign.

$ millions Numerator Denominator $\%$ of Allowance for Doubtful Accounts to Gross Accounts Receivable

Current Year: Answer $4$

Answer $5$

Prior Year: Answer $6$

Answer $7$

Two Years Prior: Answer $8$

Answer $9$

c$.$ What amount of bad debts expense did HP report each year? Compute the ratio of bad debts expense to the accounts receivable actually written off.

Note: Do not use a negative sign.

$ millions Bad Debt Expense

Current Year: Answer $10$

Prior Year: Answer $11$

Two Years Prior: Answer $12$

$ millions Numerator Denominator Ratio of Bad Debt Expense to Accounts Receivable Actually Written Off

Current Year: Answer $13$

Answer $14$

Prior Year: Answer $15$

Answer $16$

Two Years Prior: Answer $17$

Answer $18$

d$.$ Compute common$-$size bad debt expense.

Note: Do not use a negative sign.

$ millions Numerator Denominator Common$-$Size Bad Debt Expense

Current Year: Answer $19$

Answer $20$

Prior Year: Answer $21$

Answer $22$

Two Years Prior: Answer $23$

Answer $24$

e$.$ Compute the days sales outstanding $($DSO$)$ for the two most recent fiscal years.

Note: Round answers to the nearest day, if applicable.

Note: Do not round intermediate calculations, if applicable.

Days Sales Outstanding $($DSO$)$

Current Year: Answer $25$

Prior Year: Answer $26$

f$.$ Given your analysis of the allowance, bad debt, and DSO, are HP$$s accounts receivable of low, medium, or high quality?

HP$\text{'}$s A$/$R are of Answer $27$

quality.