The following current asset appears on the balance sheet in 3M Companys Form 10 K for the year ended December 31, 2012 (amounts in millions of dollars) Required 1 What is the balance in 3M Companys Allowance for Doubtful Accounts at the end of 2012 and 2011 2 What is the net realizable value of 3M ...

1 The balance in Allowance for Doubtful Accounts is 105 mi ...

The following current asset appears on the balance sheet in 3M Companys Form 10-K for the year

Question:

The following current asset appears on the in 3M Company€™s Form 10-K for the year ended December 31, 2012 (amounts in millions of dollars):
12/31/12 12/31/11 Accounts receivable-net of allowances of $105 and $108 $3,867 $4,061

12/31/12 12/31/11 Accounts receivable-net of allowances of $105 and $108 $3,867 $4,061

Required
1. What is the balance in 3M Company€™s Allowance for Doubtful Accounts at the end of 2012 and 2011?
2. What is the net realizable value of 3M Company€™s accounts receivable at the end of each of these two years?
3. What caused increases in the allowance account during 2012? What caused decreases? Explain what a net decrease in the account for the year means.

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...

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