Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TLC Inc. manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets. Receivables,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
TLC Inc. manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets. Receivables, less allowances of $210 in 2015 and $222 in 2014 2015 2014 $ 4,972 $ 5,413 In addition, the income statement reported sales revenue of $34,764 ($ in millions) 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 $35,737 ($ in millions). There were no recoveries of accounts receivable previously written off Required: 1. Compute the following ($ in millions): a. The net amount of bad debts written off or reinstated by EMC during 2015, b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015 2. Suppose that EMC 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 2015 year-end balance sheet. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Calculate the amount of bad debts written off by TLC during 2015, bad debt expense that TLC would include in its income statement for 2015 and the approximate percentage that TLC used to estimate debts for 2015, assuming that it uses the income statement approach. (Enter your answers in millions, negative amounts should be indicated by a minus sign and round your percentage answer to 1 decimal place.) HEY. 1. Compute the following ($ in millions): a. The net amount of bad debts written off or reinstated by EMC during 2015, b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015 2. Suppose that EMC 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 2015 year-end balance sheet. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Calculate the amount of bad debts written off by TLC during 2015, bad debt expense that TLC would include in its income statement for 2015 and the approximate percentage that TLC used to estimate debts for 2015, assuming that it uses the income statement approach. (Enter your answers in millions, negative amounts should be indicated by a minus sign and round your percentage answer to 1 decimal place.) a. Bad debts written off (reinstated) Bad debt expense b. Req 2A > Required: 1. Compute the following ($ in millions): a. The net amount of bad debts written off or reinstated by EMC during 2015, b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015 2. Suppose that EMC 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 2015 year-end balance sheet. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015 Complete this question by entering your answers in the tabs below. Reg 1 Req ZA Reg 28 Suppose that TLC had used the direct write-off method to account for bad debts, calculate the accounts receivable information that would be included in the 2015 year-end balance sheet. (Enter your answers in millions.) 2015 2014 Current assets: Receivables There were no recoveries of accounts receivable previously written off. Required: 1. Compute the following ($ in millions): a. The net amount of bad debts written off or reinstated by EMC during 2015. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. 2. Suppose that EMC 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 2015 year-end balance sheet. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015, Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Suppose that TLC had used the direct write-off method to account for bad debts, calculate the amount of bad debt expense that TLC would include in its 2015 Income statement. (Enter your answers in millions. Negative amounts should be entered with a minus sign.) Bad debt expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Management

Authors: Paresh Shah

2nd Edition

0198077033, 978-0198077039

More Books

Students also viewed these Accounting questions

Question

Why has Negotiating Women, Inc. focused its attention on women?

Answered: 1 week ago