5 P5-55A. (Learning Objectives 2, 3, 4,5: Apply GAAP for revenue, receivables, collections, and uncollectibles using the percent-of-sales method; account for notes receivable) This problem takes you through the accounting for sales, receivables, uncollectibles, and notes receivable for Bates Delivery Corp., the overnight shipper. By selling on credit, the company cannot expect to collect 100% of its accounts receivable. At October 31, 2016, and 2017, respectively, Bates Delivery Corp. reported the following on its balance sheet (in millions of dollars): Delivery Corp. reported the following o