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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 $(\backslash (\backslash$$ $\backslash )$ in millions$)$:

$```$

$2020$

$2019$

Current assets:

Receivables, less allowance of $$154$ in $2020$ and

$$145$ in $2019$

$ $12,884$

$ $12,771$

$```$

In addition, the income statement reported sales revenue of $\backslash (\backslash$$ $96,178\backslash )$ million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $\backslash (\backslash$$ $95,868\backslash )$ million. There could have been significant recoveries of accounts receivable previously written off.

Required:

$1.$ Compute the following $(\backslash (\backslash$$ $\backslash )$ 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.

$2.$ Suppose that Green had used the direct write$-$off method to account for bad debts. Compute the following $(\backslash (\backslash$$ $\backslash )$ 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.

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