Question

The fiscal year 2015 and 2014 financial statements for AT&T's financial statements contained the following information:

Balance Sheets ($ in millions)                                            2015                2014

Current assets:

Accounts receivable, net of allowances for

doubtful accounts of $704 and $454                                 $16,532           $14,527

Income Statements ($ in millions)                                    2015                2014

Revenues                                                                          $146,801         $132,447

In addition, the statement of cash flows disclosed bad debt expense of $1,416 million in 2015 and $1,032 million in 2014.

Calculate the following (must show work below to get credit:

Actual bad debt write-offs made during 2015:

Cash collected from customers in 2015 (don’t forget to include your answer for part 1):

Answer 1

Allowance for Doubtful debt
Balance as on 2014	454
Bad debt expenses	1,416
Total	1,870
Less Bad debt written off	1,166
Balance as on 2015	704
Accounts receivable
Balance as on 2014	14,527
Add Revenue of 2015	1,46,801
Total	1,61,328
Less Collection from Accounts receivables	1,44,092
Less Allowance for Doubtful debt	704
Balance as on 2015	16,532
Collection from Accounts receivables
Opening balance + Revenue for the year - Allowance for doubt ful debt - Collection from receivables