Eli Lilly, a major pharmaceutical company, includes the following in its December 31, 2011, balance sheet ($

Question:

Eli Lilly, a major pharmaceutical company, includes the following in its December 31, 2011, ($ amounts in millions):
Accounts receivable, net of allowances of $110.1......$3,597.7
1. Compute the ratio of the allowance for doubtful items to gross for December 31, 2011. In 2009, this ratio was 3.4%. What are some possible reasons for the changes in this ratio?
2. Independent of the actual balances, prepare a journal entry to write off an uncollectible account of $210,000 on January 2, 2011. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...