Determine the amount of actual bad debt write-offs made

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Reference no: EM13572915

Aldo's financial statements for the 2010 and 2009 fiscal years contained the following information:

Balance Sheets ($ in millions)

2010

2009

Current assets:



Accounts receivable, net of allowances for                $13,610

doubtful accounts of $957 and $1,202

$14,845

Income Statements ($ in millions)

2010

2009

Revenues

$124,280

$122,513

In addition, the statement of cash flows disclosed bad debt expense of $1,334 million in 2010 and $1,762 million in 2009.
Required:

  1. Determine the amount of actual bad debt write-offs made during 2010.
  2. Determine the amount of cash collected from customers during 2010.
  3. Compute the receivables turnover ratio for 2010.

 

Reference no: EM13572915

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