{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-16T00:07:05-04:00", "answer_date": "2024-09-16 00:07:05", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "11106657", "url": "\/study-help\/questions\/question-using-the-information-above-how-do-you-feel-the-11106657", "question_creation_date_js": "2024-09-16T00:07:05-04:00", "question_creation_date": "Sep 16, 2024 12:07 AM", "meta_title": "[Solved] Question: Using the information above, ho | SolutionInn", "meta_description": "Answer of - Question: Using the information above, how do you feel the COVID-19 pandemic impacted the collectability of Facebooks | SolutionInn", "meta_keywords": "question,information,feel,covid-19,pandemic,impacted,collectability,facebooks,receivables,support,answer,financial", "question_title_h1": "Question: Using the information above, how do you feel the COVID-19 pandemic impacted the collectability of Facebooks receivables? Support your answer using information from Facebooks", "question_title": "Question: Using the information above, how do you feel the COVID-19 pandemic", "question_title_for_js_snippet": "Question Using the information above, how do you feel the COVID 19 pandemic impacted the collectability of Facebooks receivables Support your answer using information from Facebooks financial data above Information needed to answer above question The COVID 19 pandemic affected companies in various ways, including the collectibility of their receivables Below is a summary of Facebooks accounts receivable balances on December 31, 2020 alongside December 31, 2019 for comparison December 31, 2020 December 31, 2019 Accounts receivable $11,449 million $9,610 million Allowance for doubtful accounts ($114 million) ($92 million) Net accounts receivable $11,335 million $9,518 million Below are two excerpts from the footnotes of Facebooks December 31, 2020 10 K annual report Read these paragraphs for further details on the impact of the COVID 19 pandemic on Facebooks accounts receivable Critical Accounting Policies and Estimates In response to the economic slowdown caused by the COVID 19 pandemic, we believe that the assumptions and estimates associated with collectibility assessment of revenue and credit losses of accounts receivable could have a material impact to our consolidated financial statements in future periods, depending on the duration or degree of the impact of the COVID 19 pandemic on the global economy Accounts Receivable and Allowances Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts We make estimates of expected credit and collectibility trends for the allowance for credit losses and allowance for unbilled receivables based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers Expected credit losses are recorded as general and administrative expenses on our consolidated statements of income As of December 31, 2020 and 2019, our accounts receivable, net were $11 33 billion and $9 52 billion, respectively, and the allowances of accounts receivable were immaterial ", "question_description": "

Question: <\/strong>Using the information above, how do you feel the COVID-19 pandemic impacted the collectability of Facebooks receivables? Support your answer using information from Facebooks financial data above<\/p>

<\/p>

Information needed to answer above question:<\/strong><\/p>

The COVID-19 pandemic affected companies in various ways, including the collectibility of their receivables. Below is a summary of Facebooks accounts receivable balances on December 31, 2020 alongside December 31, 2019 for comparison.<\/p>

<\/strong><\/p> <\/td>

December 31, 2020<\/strong><\/p> <\/td>

December 31, 2019<\/strong><\/p> <\/td> <\/tr>

Accounts receivable<\/p> <\/td>

$11,449 million<\/p> <\/td>

$9,610 million<\/p> <\/td> <\/tr>

Allowance for doubtful accounts<\/p> <\/td>

($114 million)<\/p> <\/td>

($92 million)<\/p> <\/td> <\/tr>

Net accounts receivable<\/p> <\/td>

$11,335 million<\/p> <\/td>

$9,518 million<\/p> <\/td> <\/tr> <\/tbody> <\/table>

<\/p>

Below are two excerpts from the footnotes of Facebooks December 31, 2020 10-K annual report. Read these paragraphs for further details on the impact of the COVID-19 pandemic on Facebooks accounts receivable.<\/p>

<\/p>

Critical Accounting Policies and Estimates<\/strong><\/p>

In response to the economic slowdown caused by the COVID-19 pandemic, we believe that the assumptions and estimates associated with collectibility assessment of revenue and credit losses of accounts receivable could have a material impact to our consolidated financial statements in future periods, depending on the duration or degree of the impact of the COVID-19 pandemic on the global economy. <\/p>

<\/p>

Accounts Receivable and Allowances<\/strong><\/p>

Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We make estimates of expected credit and collectibility trends for the allowance for credit losses and allowance for unbilled receivables based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Expected credit losses are recorded as general and administrative expenses on our consolidated statements of income. As of December 31, 2020 and 2019, our accounts receivable, net were $11.33 billion and $9.52 billion, respectively, and the allowances of accounts receivable were immaterial.<\/p>

<\/p>", "transcribed_text": "", "related_book": { "title": "Accounting for Governmental and Nonprofit Entities", "isbn": "978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960", "edition": "15th Edition", "authors": "Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/70.jpg", "uri": "\/textbooks\/accounting-for-governmental-and-nonprofit-entities-15th-edition-70", "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-16 00:07:05", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/statistical-techniques-in-business-\/27-the-following-may-be-considered-a-very-simple-onedimensional-2018159", "description": "2.7 The following may be considered a very simple one-dimensional model of rubber. A chain consists of n( 1) links each of length a. The links all lie along the x-axis but they may double back on...", "stars": 0 }, { "url": "\/memphis-electrical-makes-small-electric-motors-for-a-variety-of", "description": "Memphis Electrical makes small electric motors for a variety of home appliances. Memphis sells the motors to appliance makers, who assemble and sell the appliances to retail outlets. Although Memphis...", "stars": 3 }, { "url": "\/study-help\/questions\/question-using-the-information-above-how-do-you-feel-the-11106657", "description": "Question: Using the information above, how do you feel the COVID-19 pandemic impacted the collectability of Facebooks receivables? Support your answer using information from Facebooks financial data...", "stars": 3 }, { "url": "\/study-help\/questions\/which-parent-function-has-a-domain-of-negative-infinity-postive-3949649", "description": "which parent function has a domain of negative infinity, postive infinity.", "stars": 3 }, { "url": "\/study-help\/questions\/sin-x-3-show-step-by-step-how-you-use-1026015", "description": "sin x 3. Show step by step how you use tan x = - COS X and the compound formulas for sine and cosine to produce the addition formula for tangent, tan(A + B) = tan A + tan B 1-tan Atan B [4 marks]", "stars": 3 }, { "url": "\/study-help\/questions\/solve-both-parts-showing-work-and-provide-an-explanation-hint-999782", "description": "Solve both parts showing work and provide an explanation (Hint: Rationalize twice) (ii) Use the result of part (i) to evaluate (Hint: It's a one line solution using part (i).) lim H 2 19-2x+5-4 x-2...", "stars": 3 }, { "url": "\/study-help\/questions\/differentiate-the-function-rz-28-212-rz-1000909", "description": "Differentiate the function. r(z) = 2-8 - 21\/2 r'(z) =", "stars": 3 }, { "url": "\/study-help\/questions\/on-list-k-find-the-angle-between-v-and-w-1002065", "description": "on list K Find the angle between v and w. v=-3i+2j, w=3i+9j estion 14 The angle between v and w is . (Do not round until the final answer. Then round to the nearest tenth as needed.) uestion 15...", "stars": 3 }, { "url": "\/study-help\/questions\/1-list-five-things-a-good-cgl-should-have-2-1002221", "description": "1- List five things a good CGL should have. 2- List 3 state in the United States to open LLC and state why. 2. According to your textbook, 1- List and explain the qualities to look for when choosing...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/direct-materials-resin-9-pounds-per-pot-at-a-cost-11106656", "next": "\/study-help\/questions\/required-1-what-is-the-annual-payment-round-to-the-11106658" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Question: Using the information above, how do you feel the COVID-19 pandemic", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/question-using-the-information-above-how-do-you-feel-the-11106657" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }d": "1" } }