Question

In: Accounting

The following information is taken from the 2010 annual report to shareholders of Hewlett-Packard (HP) Co.

The following information is taken from the 2010 annual report to shareholders of Hewlett-Packard (HP) Co.

18.JPG

Required:

 a/ What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2010 and 2009, respectively?

b/ What kind of account is the provision for doubtful accounts in HP's financial statements? (Note: Provision for doubtful accounts is synonymous with bad debt expense; that is, the charge against income for estimated uncollectible accounts from credit sales in that period) 

c/ Using a T-account for the allowance for doubtful accounts, identify the amounts written off during the year 2010.

Solutions

Expert Solution

a) Balance for Prov for Bad & doubtful Debt = Gross A/C Receivable - Net A/C Receivable

For yr ended 20009:- 17166-16537=629

For yr 2010:- 19006-18481 = 525

b) provision for doubtful debts is a liability Account in financial statements.

c) Bad debts w/off during the year 2010:

DrProv for Doubtful Allowance for year 2010cr
ParticularsAmtParticularsAmt


Opening Bal c/f629
Bad debts w/off(b/f)260Provision booked during the year156
Closing bal525

Total785Total785


ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following information is taken from the 2015 annual report to shareholders of COVID Co.                            
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)...
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2010 10-K report....
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2010 10-K report. October 31 (in millions) 2010 2009 Accounts receivable, net $18,481 $16,537 HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts. For the fiscal years ended October 31 (in millions) 2010 2009 2008 Allowance for doubtful accounts-accounts receivable Balance, beginning of period $ 629 $ 553 $ 226 Increase in allowance from acquisition 7 -- 245 Addition...
n a footnote on its 2019 annual report Hewlett Packard reported the following operating lease obligations...
n a footnote on its 2019 annual report Hewlett Packard reported the following operating lease obligations (in $ millions): Year Amount 2020 9,087 2021 8,498 2022 7,460 2023 4,514 2024 3,306 Calculate the present value of the future operating lease obligations, assuming a discount rate of 12%.
On November 20, 2012, Hewlett-Packard (HP) disclosed that it discovered an accounting fraud and has written...
On November 20, 2012, Hewlett-Packard (HP) disclosed that it discovered an accounting fraud and has written down $8.8 billion of the value of Autonomy, the British software company that it bought in 2011 for $11.1 billion, after discovering that Autonomy misrepresented its finances. In May 2012, HP had fired former Autonomy CEO, Dr. Michael Lynch, citing poor performance by his unit. Provide a brief discussion of the auditor liabilities and the potential defenses. What duties of care, laws, or responsibilities...
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of...
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Inc. for the 2021 fiscal year. The following additional information from an analysis of Merry's financial position is available: Current ratio = 1.352397; Acid-test ratio = 0.5771067; Debt to equity ratio = 1.6157180. Required: Compute the missing amounts in the balance sheet. (Enter your answers in millions of dollars. Round your intermediate and final answers to the nearest whole dollar.) MERRY INTERNATIONAL...
One important purpose of a company Hewlett-Packard website is to communicate positive information about the company.Hewlett-Packard...
One important purpose of a company Hewlett-Packard website is to communicate positive information about the company.Hewlett-Packard uses inclusive practices such as nondiscrimination policy, electronic job posting, harassment-free work environment, domestic partner benefits, employee network groups, flexible work hours and safe and pleasant work environment How might the seven inclusive practices listed earlier be perceived by people who are gays or lesbian? How might the practices be perceived by other employees?
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October...
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 (in millions) 2015 2014 Accounts receivable $13,363 $13,832 Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts. For the fiscal years ended October 31 (in millions) 2015 2014 2013 Allowance for doubtful accounts-accounts receivable Balance, beginning of period $232 $332 $464 Provision for doubtful accounts 46 25 23 Deductions, net of recoveries (89) (125) (155)...
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October...
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 (in millions) 2015 2014 Accounts receivable $13,363 $13,832 Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts. For the fiscal years ended October 31 (in millions) 2015 2014 2013 Allowance for doubtful accounts-accounts receivable Balance, beginning of period $232 $332 $464 Provision for doubtful accounts 46 25 23 Deductions, net of recoveries (89) (125) (155)...
Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report. October 31 (in millions) 2007...
Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report. October 31 (in millions) 2007 2006 Accounts receivable, net $13,420 $10,873 HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts. For the fiscal years ended October 31 (in millions) 2007 2006 2005 Allowance for doubtful accounts-accounts receivable Balance, beginning of period $ 220 $ 227 $ 286 Increase in allowance from acquisition 3 4 -- Addition of bad debts provision 32...
The following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ in...
The following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ in millions): Accounts payable 2,297 Accounts receivable (net) 3,531 Accrued liabilities 4,505 Cash and cash equivalents 202 Cost of goods sold 17,931 Other current payables 2,052 Current portion of long-term debt 580 Other long-term liabilities 10,711 Retained earnings as of 12/31/2021 2,791 Goodwill and other intangible assets (net) 37,157 Salaries expense 1,965 Interest and other debt expense, net 1,837 Inventories 3,426 Long-term debt 8,534 Long-term...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT