Asignment
The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP) Co.
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For Fiscal 2013
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For Fiscal 2012
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Provision for doubtful accounts
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$ 29 million
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$ 106 million
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At Fiscal Year-end 2013
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At Fiscal Year-end 2012
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Accounts receivable, net
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15,906 million
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16,437 million
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Accounts receivable, gross
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16,268 million
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16,931million
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During Burns Company's first year of operations, credit sales totaled $152,000 and collections on credit sales totaled $111,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $360 of specific accounts as uncollectible.
Required:
1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Part 1
Record the entry to write off specific accounts
Part 2
Record the bad debt expense
2. Show the year-end balance sheet presentation for accounts receivable.