Question: . 19. Walgreen Inc. uses the direct method of reporting cash flows from operations. Given these facts: GAAP Basis Sales = $12 Beginning Gross Trade

. 19. Walgreen Inc. uses the direct method of reporting cash

. 19. Walgreen Inc. uses the direct method of reporting cash flows from operations. Given these facts: GAAP Basis Sales = $12 Beginning Gross Trade Accounts Receivable =$3 (Net Trade A/R=$2) Ending Gross Trade Accounts Receivable = $4 (Net Trade A/R=$1) During the year the company wrote off $1 of trade accounts receivable as uncollectible and recorded $3 of bad debts expense a. $10 What amount will the company report as cash receipts from customers (e.g., cash basis sales)? b. $12 d. $14 Po y c. $13 14e. None of the above

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