E8-13 Using Financial Statement Disclosures to Infer Write-Offs and Bad Debt Expense and to Calculate the Receivables Turnover Ratio [LO 8-2, LO 8-4]

Megasoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Megasoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).

	June 30, 2016			June 30, 2015
Accounts Receivable, Net of Allowance for Doubtful Accounts of $270 and $320	$	16,550		$	15,300
Net Revenues		60,000			53,000

According to its Form 10-K, Megasoft recorded Bad Debt Expense of $18 and did not recover any previously written-off accounts during the year ended June 30, 2016.

Required:

1. What amount of accounts receivable was written off during the year ended June 30, 2016? (Enter your answer in millions.)

2. What was Megasofts receivables turnover ratio in 2016? (Round your answer to 1 decimal place.)

E8-13 Using Financial Statement Disclosures to Infer Write-Offs and Bad Debt Expense and to Calculate the Receivables Turnover Ratio (LO 8-2, LO 8-4] Megasoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Megasoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions). June 30, 2016 June 30, 2015 Accounts Receivable, Net of Allowance for Doubtful Accounts of $270 and $320 Net Revenues $ 16,550 60,000 $ 15,300 53,000 According to its Form 10-K, Megasoft recorded Bad Debt Expense of $18 and did not recover any previously written-off accounts during the year ended June 30, 2016. Required: 1. What amount of accounts receivable was written off during the year ended June 30, 2016? (Enter your answer in millions.) 2. What was Megasoft's receivables turnover ratio in 2016? (Round your answer to 1 decimal place.) 1. Accounts Receivable Written-Off million 2. Receivables Turnover Ratio times