Receivables; bad debts and returns; Symantec
Response to the following problem:
Symantec Corp., located in Cupertino, California, is one of the world's largest producers of security and systems management software. The company's consolidated balance sheets for the 2009 and 2008 fiscal years included the following ($ in thousands):
Current assets: 2009 2008
Receivables, less allowances of $20,991 in 2009 and $23,314 in 2008 $837,010 $758,200
A disclosure note accompanying the financial statements reported the following ($ in thousands):
| |
Year Ended (In thousands) |
| |
2009 |
2006 |
|
Trade accounts receivable, net.
|
|
|
|
Receivables
|
$ 858,001
|
$781,514
|
|
Less: allowance for doubtful accounts
|
(8,863)
|
(8,915)
|
|
Less: reserve for product returns
|
(12,128)
|
(14,399)
|
|
Trade accounts receivable, net:
|
$837,010
|
$758,200
|
Assume that the company reported bad debt expense in 2009 of $1,500 and had products returned for credit totaling $3,155 (sales price). Net sales for 2009 were $6,149,800 (all numbers in thousands).
Required:
1. What is the amount of accounts receivable due from customers at the end of 2009 and 2008?
2. What amount of accounts receivable did Symantec write off during 2009?
3. What is the amount of Symantec's gross sales for the 2009 fiscal year?
4. Assuming that all sales are made on a credit basis, what is the amount of cash Symantec collected from customers during the 2009 fiscal year?