Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The company's 2013 financial statements contain the following information (in millions):

A note disclosed that the allowance for uncollectible accounts had a balance of $104 million and $91 million at the end of 2013 and 2012, respectively. Bad debt expense for 2013 was $32 million. Assume that all sales are made on a credit basis.
Required:
1. What is the amount of gross (total) accounts receivable due from customers at the end of 2013 and 2012?
2. What is the amount of bad debt write-offs during 2013?
3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2013.
4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2013.

Transcribed Image Text:

2013 2012 Balance sheets Accounts receivable, net S 3,117 3,132 Income statements: Sales revenue S25,313 23,331