P7-5 Receivables; bad debts and returns; Avon Products, Inc. LO7-4, LO7-5

Avon Products, Inc., located in New York City, is one of the worlds largest producers of beauty and related products. The companys consolidated balance sheets for the 2015 and 2014 fiscal years included the following ($ in thousands):

2015 2014

Current Assets:

Receivables, less allowances of $86,700 in 2015

and $ 106,900 in 2014 $443,000 $515,600

A disclosure note accompanying the financial statements reported the following ($ in thousands):

Year Ended

2015 2014

Calculation of account receivables, net:

Receivables $529,700 $622,500

Less: allowance for doubtful accounts (77,600) (93,700)

Less: reserve for product returns (9,100) (13,200)

Trade accounts receivables, net: $443,000 $515,600

Assume that the company reported bad debt expense in 2015 of $144,100 and had products returned for credit totaling $6,800 (sales price). Net Sales for 2015 were $6,076,500 ($ in thousands).

Required:

What is the amount of accounts receivable due from customers at the end of 2015 and 2014?

What amount of accounts receivables did Avon write-Off during 2015?

What is the amount of Avons gross sales for the 2015 fiscal year?

Assuming that all sales are made on a credit basis, what is the amount of cash Avon collected from customers during the 2015 fiscal year?