The following information was taken from the publicly available records of General Electric concerning the allowance for un-collectible accounts for its financing subsidiary, GE Capital Services (dollars in millions):

a. What dollar amounts of bad debt expense were recognized on the 2014 and 2013 income statements? Why do you think the figure changed so dramatically?
b. What dollar values of customer accounts were written off the books in 2014 and 2013?
c. By what percentage did the allowance account change from 2013 to 2014, and what are several reasons this may have occurred?

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2014 2013 $5,178 $4,944 Balance at Jan. 1 Increases 3,993 4,818 Decreases (5,611) (6,027) Recoveries 1,515 1,443 Balance at Dec. 31 $5,075 $5,178