# HW_5 - Problem 7-5 Requirement 1 (\$ in millions) Accounts...

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Problem 7-5 Requirement 1 (\$ in millions) 2009 2008 Accounts receivable, net \$837,010 \$758,200 Add: Allowances 20,991 23,314 Accounts receivable, gross \$858,001 \$781,514 Requirement 2 (\$ in millions) Analysis of allowance for doubtful accounts Balance, beginning of year \$8,915 Add: Bad debt expense 1,500 Less: Balance end of year (8,863) Write offs \$1,552 Requirement 3 (\$ in millions) Analysis of allowance for sales returns Balance, end of year \$12,128 Add: Actual returns 3,155 Less: Balance beginning of year (14,399) Estimated sales returns \$ 884 Gross sales for the year equal net sales of \$6,149,800 + estimated sales returns of \$884 = \$6,150,684 thousand. Requirement 4 (\$ in millions) Accounts receivable analysis: Balance, beginning of year \$ 781,514 Add: Credit sales 6,150,684 Less: Bad debt write-offs (1,552) Less: Actual sales returns (3,155) Less: Balance end of year (858,001 ) Cash collections \$6,069,490

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Problem 7-10 Requirement 1 February 28, 2011 Note receivable . ............................................................ 10,000 Sales revenue . ........................................................... 10,000 March 31, 2011 Note receivable (face amount) .......................................... 8,000
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## HW_5 - Problem 7-5 Requirement 1 (\$ in millions) Accounts...

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