Question # 4: (15 points) (1) What determines whether receivables are current or noncurrent assets? (2) A recent annual report for FedEx Co. contained the following data (in millions for MAY 31, Current Year Prior Year Accounts receivable $3,660 $3,422 Less: Allowance for doubtful accounts 144 125 Net accounts receivable $3,516 $3,297 Net sales (assume all on credit) $32,294 Required: a. Determine the accounts receivable turnover ratio and days to collect for the current year. b. Explain the meaning of each number. (3) Intel Corporation is a well-known supplier of computer chips, boards, systems, and software building blocks. Assume the company recently reported the following amounts in its unadjusted trial balance as of December 31, 2008 (all amounts in millions): Debits Credits Accounts Receivable $33,000 Allowance for Doubtful Accounts $ 650 Sales 332,404 Required: a. Assume Intel uses the aging of accounts receivable method and estimates that $2,000 of accounts receivable will be uncollectible. Prepare the adjusting journal entry required at December 31, 2008, for recording bad debt expense. b. Repeat requirement 1, except this time assume the unadjusted balance in Intel's Allowance for Doubtful Accounts at December 31, 2008, was a debit balance of $200. c. If one of Intel's customers declared bankruptcy in 2009, what journal entry would be used to write off its $ 750 balance? d. Assume Intel uses 1% percent of sales to estimate its bad debt expense for the year 2008. What adjusting journal entry would be required at December 31, 2008, for bad debt expense? 2