Net income affected, What amount of bad debts was written

Net income affected

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Reference no: EM13913227

East Shore Healthcare reported the following information about net revenues and accounts receivables (amounts in millions): 2013 2012 Accounts receivable, less allowance for doubtful accounts of $500 and $460 $570 $480 Net revenues 3,990 3,360 According to its Form 10-K, East Shore recorded a provision for doubtful accounts of $320 in 2013. a) What amount of bad debts was written off during the year? Clearly show your work. b) Since East Shore is a not-for-profit organization, it does not pay income taxes. How was net income affected by the write off? Explain your answer. c) Based on your answer to requirement a) above, solve for the cash collected from customers for 2013, assuming that all revenue transactions were on open account. Clearly show your work.

Reference no: EM13913227

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