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.
Prepare a T account that depicts how bad debt expense and writeoffs of bad debts affect the balance of the allowance uncollectible accounts with a debit, credit or not at all, and estimate the amount of bad debts written off by Minta duril 2020. Note: Enter your answers in millions. Analyze changes in the gross accounts recelvable account to calculate the amount of cash recelved from customers du 2020. Note: Enter your answers in millions. 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 depi how sales, collections, bad debt expense, and writeoffs of bad debts affect the balance of net accounts recelvable with debit, a credit or not at all, and estimate Minta's 2020 bad debt expense. Note: Enter your answers in millions. Analyze changes in net accounts recelvable to calculate the amount of cash received from customers during 2020. Note: Enter your answers in millions. What is the amount of gross (total) accounts recelvable due from customers at Note: Enter your answers in millions
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