Following is the current asset section from Intuit Inc.'s balance sheet.

Total revenues were \(\$ 4,171\) million ( \(\$ 1,515\) million in product sales and \(\$ 2,656\) million in service revenues and other) in 2013.
Required

a. What are Intuit's gross accounts receivable at the end of 2012 and 2013 ?

b. For both 2013 and 2012, compute the ratio of the allowance for uncollectible accounts to gross receivables. What trend do you observe?

c. Compute the receivables turnover ratio and the average collection period for 2013 based on gross receivables computed in part \(a\). Does the collection period (days sales in receivables) appear reasonable given Intuit's lines of business (Intuit's products include QuickBooks, TurboTax and Quicken, which it sells to consumers and small businesses)? Explain.

d. Is the percentage of Intuit's allowance for uncollectible accounts to gross accounts receivable consistent with what you expect for Intuit's line of business? Explain.

e. Intuit discloses the following table related to its allowance for uncollectible accounts from its 10-K. Comment on the change in the allowance account during 2011 through 2013.

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July 31 ($ millions) Current assets: Cash and cash equivalents Investments.. Accounts receivable, net of allowance for doubtful accounts of $38 and $46.. Income taxes receivable. Deferred income taxes. Prepaid expenses and other current assets. Current assets of discontinued operations Current assets before funds held for customers Funds held for customers... Total current assets..... 2013 $1,009 652 130 62 166 98 44 2,161 235 $2,396 2012 $393 351 142 53 183 65 46 1,233 290 $1,523