Microsoft develops, produces, and markets a wide range of computer software including the Windows operating system. On a recent balance sheet, Microsoft reported the following information about net sales revenue and accounts receivable.

According to its Form 10-K, Microsoft recorded bad debt expense of $47 and did not reinstate any previously written-off accounts during the current year.
Required: 1. What amount of bad debts was written off during the current year? 2. Assuming that all of Microsoft's sales during the period were on open account, solve for cash collected from customers for the current year.

Transcribed Image Text:

Accounts receivable, net of allowances of $76 and $57 Net revenues Current Prior Year Year $ 338 $ 270 3,753 2,759