The following information was taken from the publicly available records of General Electric concerning the allowance for uncollectible account for its financing subsidiary, GE Capital Services (dollars in millions):

(a) What dollar amounts of bad debt expense were recognized on the 2008 and 2007 income statements? Why do you think the figure changed so dramatically?(b) What dollar values of customer accounts were written off the books in 2008 and 2007?(c) By what percentage did the allowance account change from 2007 to 2008, and what are several reasons why this may haveoccurred?

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2008 2007 $ 4,238 7,518 (8,162) 1.731 $ 5,325 S 3,945 4,431 (5,966) 1,828 S 4,238 Balance at Jan. 1 Increases Decreases Recoveries Balance at Dec. 31