Part 2 (Accounts Receivable)
Microsoft provided the following disclosure related to its accounts receivable.
Instructions
(a) Compute Microsoft's accounts receivable turnover for 2011 and discuss your results. Microsoft had sales revenue of $69,943 million in 2011.
(b) Reconstruct the summary journal entries for 2011 based on the information in the disclosure.
(c) Briefly discuss how the accounting for bad debts affects the analysis in Part 2 (a).