Dell Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions):

	2020	2019
Current assets:
Receivables, less allowance of $94 in 2020 and $85 in 2019	$ 12,484	$ 12,371

In addition, the income statement reported sales revenue of $92,154 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $91,868 million. There could have been significant recoveries of accounts receivable previously written off.

Required:

1. Compute the following ($ in millions):

   • The amount of bad debts written off by Dell during 2020 (Hint: Treat it as a plug in the gross accounts receivable account).
   • The amount of bad debt expense that Dell included in its income statement for 2020 (Hint: Treat it as a plug in the allowance for uncollectible accounts).

   • The approximate percentage that Dell used to estimate bad debts for 2020, assuming that it used the income statement approach.

2. Suppose that Dell had used the direct write-off method to account for bad debts. Compute the following ($ in millions):

   • The accounts receivable information that would be included in the 2020 year-end balance sheet.
   • The amount of bad debt expense that Dell would include in its 2020 income statement.