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L Req 1 3. Reg 2A Calculate the amount of bad debts written off by TLC during 2015, bad debt expense that TLC would statement for 2015 and the approximate percentage that TLC used to estimate debts for 2015, assur Income statement approach. (Enter your answers in millions, negative amounts should be indicated your percentage answer to 1 decimal place.) Req 28 Bad debts written off (reinstated) Bad debt expense 507 Ren 24

L Req 1 3. Reg 2A Calculate the amount of bad debts written off by TLC during 2015, bad debt expense that TLC would statement for 2015 and the approximate percentage that TLC used to estimate debts for 2015, assur Income statement approach. (Enter your answers in millions, negative amounts should be indicated your percentage answer to 1 decimal place.) Req 28 Bad debts written off (reinstated) Bad debt expense 507 Ren 24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete this question by entering your answers in the tabs below. a. Req 1 b. 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.) Reg 2A Bad debts written off (reinstated) Bad debt expense Show Transcribed Text Req 1 Current assets: Receivables Req 28. Req 2A S $ Answer is not complete. Complete this question by entering your answers in the tabs below. 507 5,747 R Req 28 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.) 2015 2014 o Req 2A > < Req1 Req 28 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. a. Req 1 b. 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.) Reg 2A Bad debts written off (reinstated) Bad debt expense Show Transcribed Text Req 1 Current assets: Receivables Req 28. Req 2A S $ Answer is not complete. Complete this question by entering your answers in the tabs below. 507 5,747 R Req 28 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.) 2015 2014 o Req 2A > < Req1 Req 28 >
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 $270 in 2015 and $297 in 2014 2015 Required: 1. Compute the following ($ in millions): $ 5,477 2014 $ 5,913 In addition, the income statement reported sales revenue of $39,794 ($ 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 $40,737 ($ 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.
Transcribed Image Text: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 $270 in 2015 and $297 in 2014 2015 Required: 1. Compute the following ($ in millions): $ 5,477 2014 $ 5,913 In addition, the income statement reported sales revenue of $39,794 ($ 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 $40,737 ($ 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.
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