Answer Happy

TLC Inc. manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowances of $258 in 2015 and $282 in 2014 2015 Required: 1. Compute the following ($ in millions): $ 5,377 2014 $ 5,813 In addition, the income statement reported sales revenue of $38,788 ($ in millions) for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $39,737 ($ in millions). There were no recoveries of accounts receivable previously written off. a. The net amount of bad debts written off or reinstated by EMC during 2015. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. 2. Suppose that EMC had used the direct write-off method to account for bad debts. Compute the following ($ in millions): a. The accounts receivable information that would be included in the 2015 year-end balance sheet. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015.

Complete this question by entering your answers in the tabs below. Req 1 a. b. Req 2A Req 2B Calculate the amount of bad debts written off by TLC during 2015, bad debt expense that TLC would include in its income statement for 2015 and the approximate percentage that TLC used to estimate debts for 2015, assuming that it uses the income statement approach. (Enter your answers in millions, negative amounts should be indicated by a minus sign and round your percentage answer to 1 decimal place.) Bad debts written off (reinstated) Bad debt expense Req 1 Req 2A >

Complete this question by entering your answers in the tabs below. Req 1 Req 2A Current assets: Receivables Suppose that TLC had used the direct write-off method to account for bad debts, calculate the accounts receivable information that would be included in the 2015 year-end balance sheet. (Enter your answers in millions.) Req 2B 2015 2014 < Req 1 Req 2B >

Complete this question by entering your answers in the tabs below. Req 1 Req 2A Bad debt expense Req 2B Suppose that TLC had used the direct write-off method to account for bad debts, calculate the amount of bad debt expense that TLC would include in its 2015 income statement. (Enter your answers in millions. Negative amounts should be entered with a minus sign.) < Req 2A Req 2B