Related Question: How do I find the bad debt expense from this info?
Question by : How do I find the bad debt expense from this info?
The 2009 annual report for Sears Holding Corporation contained the following information (in millions):
2009 2008
Accounts receivable $ 703 $ 750
Allowance for doubtful accounts 58 31
Accounts receivable, net $ 645 $ 719
A footnote to the financial statements disclosed that accounts receivable write-offs amounted to $ 18 during 2009 and $ 12 during 2008. Assume that Sears did not record any recoveries.
Best answer:
Answer by Sandy
Allowance for doubtful accounts
Beginning bal. 1.1.2009 $ 31
+ Bad debts expense ??
- Write-offs $ 18
= Ending bal. 12.31.2009 $ 58
So the bad debts expense for 2009 was $ 45 millions
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