W Hill Companies develops, produces, and markets a wide range of computer software including the Windows operating system. W Hill Companies reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).

June 30, 2019 June 30, 2018

Accounts Receivable, Net of Allowance for Doubtful Accounts of $400 and $450 $ 18,350 $ 16,700

Net Revenues 89,000 80,000

According to its Form 10-K, W Hill Companies recorded Bad Debt Expense of $10 and did not recover any previously written-off accounts during the year ended June 30, 2019.

Required:

1&2. What amount of accounts receivable was written off during the year ended June 30, 2019? What was W Hill Companies receivables turnover ratio in 2019?

3. Does your answer in requirement 2 suggest the collectibility of Accounts Receivable improved (or deteriorated) in 2019, relative to 2018 when the turnover was 5.3?

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

• Req 1 to 2
• Req 3

What amount of accounts receivable was written off during the year ended June 30, 2019? What was W Hill Companies receivables turnover ratio in 2019? (Enter your answer in millions. Round your answer to 1 decimal place.)

1. Accounts Receivable Written-Off		million
2. Receivables Turnover Ratio		times

Does your answer in requirement 2 suggest the collectibility of Accounts Receivable improved (or deteriorated) in 2019, relative to 2018 when the turnover was 5.3?

Improved Deteriorated