Problem $7-2($Algo$)$ Uncollectible accounts; Green Technologies $[$LO$7-5]$

Green Technologies is a leading global end$-$to$-$end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information $($$ in millions$)$:

Current assets:

Receivables, less allowance of $$184$ in $2020$ and $$175$ in $2019,13,084,12,971$

In addition, the income statement reported sales revenue of $$98,190$ million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $$97,868$ million. There could have been significant recoveries of accounts receivable previously written off. Required:

Compute the following $($$ in millions$)$:

a$.$ The amount of bad debts written off by Green during $2020($Hint$.$ Treat it as a plug in the gross accounts receivable account$).$

b$.$ The amount of bad debt expense that Green included in its income statement for $2020($Hint$.$ Treat it as a plug in the allowance for uncollectible accounts$).$

c$.$ The approximate percentage that Green used to estimate bad debts for $2020,$ assuming that it used the income statement approach.

Suppose that Green had used the direct write$-$off method to account for bad debts. Compute the following $($$ in millions$)$:

a$.$ The accounts receivable information that would be included in the $2020$ year$-$end balance sheet.

b$.$ The amount of bad debt expense that Green would include in its $2020$ income statement.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2$B

Compute the following $($ $ in millions$)$:

a$.$ The amount of bad debts written off by Green during $2020($Hint: Treat it as a plug in the gross accounts receivable account$).$

b$.$ The amount of bad debt expense that Green included in its income statement for $2020($Hint: Treat it as a plug in the allowance for uncollectible accounts$).$

c$.$ The approximate percentage that Green used to estimate bad debts for $2020,$ assuming that it used the income statement approach.

Note: Enter your answers in millions. Round your percentage answer to $3$ decimal places.

$\backslash$table$[[\backslash$table$[[$a$.$ Bad debts written off or$],[$reinstated$]],,],[$b$.$ Bad debt expense,,$],[\backslash$table$[[$c$.$ Income statement$],[$approach$]],,\%$