The following information is taken from the 2015 annual report to shareholders of COVID Co.

For Fiscal 2015 For Fiscal 2014

Bad Debt Expense accounts $ 47 million $25 million

At Fiscal Year-end 2015 At Fiscal Year-end 2014

Accounts receivable, net 13,463 million 13,732 million

Accounts receivable, gross 13,552 million 14,064 million

1) What is the balance in COVID's allowance for doubtful accounts at the end of the fiscal years 2015 and 2014, respectively?

2) Using your answer from part (1) and the below T-account for the allowance for doubtful accounts, if COVID is using the balance sheet approach to determining bad debt expense, what percentage of year-end gross receivables did it use in 2015 and 2014, respectively?

Allowance for Doubtful Accounts

Accounts written off (net)?

Beg. Bal. ?

Provision (estimate) for doubtful accounts 47

End. Bal. ?

3) Using the above a T-account for the allowance for doubtful accounts. For each posted entry in the allowance account during 2015, prepare the journal entry.

Expert Solution

ekkarill92 answered 1 year ago

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