Question: Each member of a team is to participate in estimating uncollectibles using the aging schedule and percents shown in Problem. The division of labor is up to the team. Your goal is to accurately complete this task as soon as possible. After estimating uncollectibles, check your estimate with the instructor. If the estimate is correct, the team then should prepare the adjusting entry and the presentation of accounts receivable (net) for the December 31, 2011, balance sheet.
Problem: Access eBay's, February 17, 2010, filing of its 10-K report for the year ended December 31, 2009, at www.sec.gov.
Required: 1. What is the amount of eBay's net accounts receivable at December 31, 2009, and at December 31, 2008?
2. "Financial Statement Schedule II" to its financial statements lists eBay's allowance for doubtful accounts (including authorized credits). For the two years ended December 31, 2009 and 2008, compute its allowance for doubtful accounts (including authorized credits) as a percent of gross accounts receivable.
3. Do you believe that these percentages are reasonable based on what you know about eBay? Explain.