Johnson Mills reported the following information in its 2015 financial statement

Question

Johnson Mills reported the following information in its 2015 financial statements ($ in millions): 2015 2014

Balance Sheets:                 2015          2014

Accounts receivable, net $2,749.0    $1,976.2

Income statement:

Sales revenue                $19,080.6

A note disclosed that the allowance for uncollectible accounts had a balance of $39.4 million and $37.3 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $27.6 million. Required: Determine the amount of cash collected from customers during 2015. (All sales are on credit. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).

Explanation / Answer

Bad Debts Written off :-

Accounts Receivable a/c

Allowance for Uncollectible Accounts Analysis Amount ($ in million) Beginning Balance 37.3 Add : Bad Debts Exp. 27.6 Less : Ending Balance (39.4) Bad Debts Written off 25.5

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