The fiscal year 2015 and 2014 financial statements for AT&T\'s financial stateme

Question

The fiscal year 2015 and 2014 financial statements for AT&T's financial statements contained the following information:

Balance Sheets ($ in millions)                                         2015               2014

Current assets:

Accounts receivable, net of allowances for

doubtful accounts of $704 and $454                               $16,532          $14,527

Income Statements ($ in millions)                                  2015               2014

Revenues                                                                         $146,801        $132,447

In addition, the statement of cash flows disclosed bad debt expense of $1,416 million in 2015 and $1,032 million in 2014.

Calculate the following

1.    Actual bad debt write-offs made during 2015:

2.    Cash collected from customers in 2015:

Explanation / Answer

Part 1 actual bad debt write offs

2. Cash collection from customers

Beginning balance in allowance account 454 Add: bad debt expense 1416 Deduct: ending balance in allowance account (704) Write offs during 2015 1166

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