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Microsoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Microsoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions). June 30, 2010 June 30, 2009 Accounts Receivable, Net of Allowances of $375 and $451……. $13,014………… $11,192 Net Revenues………………………………………………………. 62,484…………. 58,437 According to its Form 10-K, Microsoft recorded Bad Debt Expense of $45 and did not recover any previously written off accounts during the year ended June 30, 2010. Required: 1. What amount of accounts receivable was written off during the year ended June 30, 2010? 2. What was Microsoft’s receivables turnover ratio (to one decimal place) in the current year? View Solution:
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