-1. Are estimated uncollectible increasing or decreasing as a percentage of revenues?

-2. What is meant by provision for uncollectible? Why is this reported in the notes?

3. What amount of write-offs occurred during 2014? (remember the handy household hints for solving almost any weird accounting problem)

-4. What was the cash collected on accounts receivables during 2014? (are you interested in gross or net receivables for this question???)

-5. What would you do with the provision for uncollectible when preparing the statement of cash flows (indirect)? Why?

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Excerpts from Pekola Company's annual report are provided below: (In millions) Income Statement Revenues (all on account) $ Net income $ Balance Sheet Current Assets: Receivables, less allowance for uncollectibles of $338 and $308, respectiv $ Footnotes Provision for uncollectibles $ 2014 17,154 $ 6,606 $ 3,052 $ 385 $ 2013 15,998 2,296 3,078 355 Excerpts from Pekola Company's annual report are provided below: (In millions) Income Statement Revenues (all on account) $ Net income $ Balance Sheet Current Assets: Receivables, less allowance for uncollectibles of $338 and $308, respectiv $ Footnotes Provision for uncollectibles $ 2014 17,154 $ 6,606 $ 3,052 $ 385 $ 2013 15,998 2,296 3,078 355

Answer rating: 100% (QA)

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