Microsoft develops produces and markets a wide range of computer
Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. In a recent annual report, Microsoft reported the following information about trade receivables and net sales revenue:
According to its annual report, Microsoft recorded bad debt expense of $ 14 during year 2 and did not reinstate any previously written- off accounts.
Required:
1. What amount of bad debts was written off during year 2?
2. Assuming that all of Microsoft’s sales during the period were on open account, compute the amount of cash collected from customers for year 2.
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