According to the company’s 2020 annual information forms, Finning International Inc. is “the largest dealer of Caterpillar products in the world.” The company is headquartered in Vancouver but has operations in Western Canada, South America, the United Kingdom, and Ireland. The following information is taken from Note 8 to Finning’s 2020 financial statements:

Required 

a. Based on the above information, what is the trend of the collectibility of the company’s receivables? Did the amount of accounts being written off increase in 2020? 

b. Calculate the percentage the allowance represents of each of the receivables in each age grouping in 2020. Have these percentages changed from 2019? What do these percentages tell you about Finning’s receivables after they are more than 120 days overdue? 

c. Based on the above information, what were Finning’s credit losses for 2020?

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December 31 ($ millions) Not past due Past due 1-30 days Past due 31-90 days Past due 91-120 days Past due greater than 120 days Total Gross $519 115 46 16 73 $769 2020 Allowance Gross $1 $620 160 66 19 72 $937 - 1 43 $45 2019 Allowance $- 1 2 39 $42