The following information was taken from the 2015 annual report of Emerson Electric Co , a leader in the network power sector (dollars in millions) a Compute total accounts receivable as of the end of 2015 and 2014, and compute the un collectible allowance as a percentage of total accounts receivab...

a Total Accounts Receivable Net Receivables Allowance for Doubtful Accounts 2015 Total Accounts Rece ...

The following information was taken from the 2015 annual report of Emerson Electric Co., a leader in

Question:

The following information was taken from the 2015 annual report of Emerson Electric Co., a leader in the network power sector (dollars in millions): 2014 2015 Balance Sheet: Receivables, less allowance for uncollectibles of $128 and $114, respectively $4,319 $5,019

2014 2015 Balance Sheet: Receivables, less allowance for uncollectibles of $128 and $114, respectively $4,319 $5,019

a. Compute total accounts receivable as of the end of 2015 and 2014, and compute the un-collectible allowance as a percentage of total accounts receivable. Did the percentage increase or decrease?
b. The bad debt expense reported on Emerson€™s 2015 income statement did not equal $128. Explain why.

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...

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