Symantec Corp., located in Cupertino, California, is one of the world\'s largest

Question

Symantec Corp., located in Cupertino, California, is one of the world's largest producers of security and systems management software. The company's consolidated balance sheets for the 2009 and 2008 fiscal years included the following ($ in thousands): 2009 2008 Current assets: Receivables, less allowances of $23,626 in 2009 and $25,949 in 2008 $ 840,410 $ 759,900 A disclosure note accompanying the financial statements reported the following ($ in thousands): Year Ended 2009 2008 (In thousands) Trade accounts receivable, net: Receivables $ 864,036 $ 785,849 Less: allowance for doubtful accounts (9,118 ) (9,170 ) Less: reserve for product returns (14,508 ) (16,779 ) Trade accounts receivable, net: $ 840,410 $ 759,900 Assume that the company reported bad debt expense in 2009 of $3,200 and had products returned for credit totaling $3,410 (sales price). Net sales for 2009 were $6,234,800 (all numbers in thousands). Required: 1. What is the gross amount of accounts receivable at the end of 2009 and 2008? (Enter your answers in thousands.) 2. What amount of accounts receivable did Symantec write off during 2009? (Enter your answer in thousands.) 3. What is the amount of Symantec's gross sales for the 2009 fiscal year? (Enter your answer in thousands.) 4. Assuming that all sales are made on a credit basis, what is the amount of cash Symantec collected from customers during the 2009 fiscal year? (Enter your answer in thousands.)

Explanation / Answer

Year 2009. Year 2008. Gross Accounts Receivable                  864,036             785,849 Less Allowance for doubtful debts                     (9,118)               (9,170) Less Reserve for Product returns                  (14,508)             (16,779) Net Accounts Receivable                  840,410             759,900 Reported Bad debt Expense                       3,200 Prodcut returned for credit (sales Price)                       3,410 Net Sales                 6,234,800 Gross Sales =Net sales+Product return=               6,238,210 Year 2009. Year 2008.     1.0 Gross Accounts Receivable              864,036.00       785,849.00     2.0 Accounts Receivable written Off in 2009= Bad debt reported=                 3,200.00     3.0 Gross Sales in 2009         6,238,210.00     4.0 Cash Collection in 2009 Opening Balance AR 2009                  785,849 Add Net Sales                 6,234,800 Less : Closing Balance AR net          (864,036.00) Cash Collection in 2009.               6,156,613

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