Apply GAAP for receivables and uncollectible receivables
Response to the following problem:
Suppose Overpriced, Inc., reported net receivables of $2,582 million and $2,269 million at January 31, 2015, and 2014, respectively, after subtracting allowances of $71 million and $67 million at these respective dates. Overpriced earned total revenue of $26,667 million (all on account) and recorded doubtful-account expense of $8 million for the year ended January 31, 2015.