Minta Corporation, is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2020...
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Accounting
Minta Corporation, is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2020 financial statements contain the following information ($ in millions):
2020 | 2019 | |
---|---|---|
Balance sheets: | ||
Accounts receivable, net | $ 3,299 | $ 4,822 |
Allowance for uncollectible accounts | 224 | 60 |
Income statements: | ||
Sales revenue | $ 38,953 | |
Statement of Cash Flows: | ||
Amortization, impairment and other | 408 | |
Decrease in accounts receivable | 1,249 |
Assume that all sales are made on a credit basis.
Required:
- What is the amount of gross (total) accounts receivable due from customers at the end of 2020 and 2019?
- Assume that bad debt expense is included in amortization, impairment and other, such that the 2020 decrease in accounts receivable of $1,249 reflects only the difference between sales and collections. Prepare a T account that depicts how sales, collections, bad debt expense, and writeoffs of bad debts affect the balance of net accounts receivable with a debit, a credit or not at all, and estimate Mintas 2020 bad debt expense.
- Prepare a T account that depicts how bad debt expense and writeoffs of bad debts affect the balance of the allowance for uncollectible accounts with a debit, credit or not at all, and estimate the amount of bad debts written off by Minta during 2020.
- Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2020.
- Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2020.





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