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(Solved): Microsoft develops, produces, and markets a wide range of computer software, including the Windo ...



Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. In a recent
annual report, Microsoft reported the following information about accounts receivable and net sales revenue:
(in millions)
Accounts receivable, net of allowances of $377 and $345
Net revenues
Current Year
$26,481
110,360
Prior Year
$22,431
96,571
According to its annual report, Microsoft recorded bad debt expense of $98 during the current year and did not reinstate any previously-
written-off accounts.
Required:
1. What amount of bad debts was written off during the current year?
2. Assuming that all of Microsoft's sales during the period were on open account, compute the amount of cash collected from customers
for the current year.



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