please explain what the net allowances of $409 and $375 mean and explain the steps to solving this problem in depth as if you were explaining to a 12 year old.

Macrosoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Macrosoft reported the following information about net sales revenue and accounts receivable (amounts in millions). According to its Form 10-K, Macrosoft recorded bad debt expense of $121 and there were no bad debt recoveries during the current year. Required: 1. Using the following T-account for Allowance for Doubtful Accounts, what amount of bad debts was written off during the current year? 2. Using the following T-account for Accounts Receivable (Gross), solve for cash collected from customers for the current year, assuming that all of Macrosoft's sales during the period were on open account. Using the following T-account for Allowance for Doubtful Accounts, what amount of bad debts was written off during the current year? (Enter your answers in millions not in dollars.) Using the following T-account for Accounts Receivable (Gross), solve for cash collected from customers for the current yea assuming that all of Macrosoft's sales during the period were on open account. (Enter your answers in millions not in dollar