Green 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$)$: Green 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$)$:

In addition, the income statement reported sales revenue of $$107,244$ 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 $$106,868$ million. There could

have been significant recoveries of accounts receivable previously written off.

Required:

Compute the following $($ $ in millions$)$:

a$.$ The amount of bad debts written off by Green during $2020($Hint$.$ Treat it as a plug in the gross accounts receivable

account$).$

b$.$ The amount of bad debt expense that Green included in its income statement for $2020($Hint$.$ Treat it as a plug in the

allowance for uncollectible accounts$).$

c$.$ The approximate percentage that Green used to estimate bad debts for $2020,$ assuming that it used the income statement

approach.

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

a$.$ The accounts receivable information that would be included in the $2020$ year$-$end balance sheet.

b$.$ The amount of bad debt expense that Green would include in its $2020$ income statement. Req $1$

Req$2A$

Compute the following $($ $ in millions$)$:

a$.$ The amount of bad debts written off by Green during $2020($Hint: Treat it as a plug in the gross accounts receivable

account$).$

b$.$ The amount of bad debt expense that Green included in its income statement for $2020($Hint: Treat it as a plug in the

allowance for uncollectible accounts$).$

c$.$ The approximate percentage that Green used to estimate bad debts for $2020,$ assuming that it used the income statement

approach.

Note: Enter your answers in millions. Round your percentage answer to $3$ decimal places.

a$.$ Bad debts written off or reinstated

b$.$ Bad debt expense

c$.$ Income statement approach Req $1$

Req $2A$

Req $2B$

Suppose that Green had used the direct write$-$off method to account for bad debts, calculate the accounts receivable

information that would be included in the $2020$ year$-$end balance sheet.

Note: Enter your answers in millions. Suppose that Green had used the direct write$-$off method to account for bad debts, calculate the amount of bad debt expense

that Green would include in its $2020$ income statement.

Note: Enter your answers in millions.

$20202019$

Current assets:

Receivables, less allowance of $$319$ in $2020$ and $$310$ in $2019$ $ $13,984$ $ $13,871$

In addition, the income statement reported sales revenue of $$107,244$ million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $$106,868$ million. There could have been significant recoveries of accounts receivable previously written off.

Required:

Compute the following $($$ in millions$)$:

The amount of bad debts written off by Green during $2020($Hint: Treat it as a plug in the gross accounts receivable account$).$

The amount of bad debt expense that Green included in its income statement for $2020($Hint: Treat it as a plug in the allowance for uncollectible accounts$).$

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

Suppose that Green 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 Green would include in its $2020$ income statement.