The following current asset appears on the balance sheet in Kraft Foods, Inc.'s 2010 annual report (amounts

Question:

The following current asset appears on the in Kraft Foods, Inc.'s 2010 annual report (amounts in millions of dollars):
12/31/10 12/31/09
Receivables (net of allowances of $246 in 2010 and $121 in 2009)....$6,539.........$5,197
Required
1. What is the balance in Kraft Foods, Inc.'s Allowance for Doubtful Accounts at the end of 2010 and 2009?
2. What is the net realizable value of Kraft Foods, Inc.'s receivables at the end of each of these two years?
3. What caused increases in the allowance account during 2010? What caused decreases? Explain what a net increase in the account for the year means.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...