service revenue on account 37,953m

collection on account 37,314m

bad debt expense, 1% of service revenue

write-offs of uncollectible receivable, 200 m

recovered an accounts receivable, 2m

This problem takes you through the accounting for salesreceivables, and uncollectibles, for FedEx Corporation, the overnight shipper. By selling on credit, FedEx cannot expect to collect 100% of its accounts receivable. Assume that at May 31, 2014, and 2013, respectively, FedEx reported the following on its balance sheet (adapted and in millions of US dollars)