Reading Apple's Balance Sheet and Notes to the Statements Following is information available in Apple Computer's 2008

Question:

Reading Apple's Balance Sheet and Notes to the Statements Following is information available in Apple Computer's 2008 annual report in Note 2 to the financial statements: The following table summarizes the activity in the allowance for doubtful accounts for the three fiscal years ended September 27, 2008 (in millions):

Use this information and that provided in the chapter opener to answer the following questions.

Required
1. What is the balance in Apple's Allowance for Doubtful Accounts at the end of 2008 and 2007?
2. What is the net realizable value of accounts receivable at the end of each of these two years?
3. What was the amount of bad debts expense for 2008 and 2007?
4. What was the amount of accounts receivable written off in 2008 and 2007?
5. Compare the amounts of accounts written off in 2008 and 2007. Why do you think the amounts written off decreased significantly in2008?

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...