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Using the Following Excerpts from the Most Recent Annual Report

Question 48

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Using the following excerpts from the most recent annual report of WooHoo, a high technology firm, analyze the accounts receivable and allowance for doubtful accounts.Be sure to show all calculations and write a thorough interpretation of those calculations.
 (dollars in millions) 20152014 Net sales $7,200$6,400 Accounts receivable - less allowance for doubtful accounts of $1,000$1,030$22 at April 30,2015 and $40 April 30,2014\begin{array} {| l | r r| } \hline \text { (dollars in millions) } & 2015 & 2014 \\\hline \text { Net sales } & \$ 7,200 & \$ 6,400 \\\text { Accounts receivable - less allowance for doubtful accounts of } & \$ 1,000 & \$ 1,030 \\\$ 22 \text { at April } 30,2015 \text { and } \$ 40 \text { April } 30,2014 &\\\hline\end{array} WooHoo
Valuation And Qualifying Accounts
For the Years Ended April 30, 2015, 2014 and 2013
 Balance at  beginning of  period  Charged to  expenses  Deductions  Balance at  end of period  Allowance for  doubtful accounts 2015$40$5($23)$222014$51$4($15)$402013$46$25($20)$51\begin{array} { | l | r | r | r | r | } \hline & \begin{array} { c } \text { Balance at } \\\text { beginning of } \\\text { period }\end{array} & \begin{array} { c } \text { Charged to } \\\text { expenses }\end{array} & \text { Deductions } & \begin{array} { c } \text { Balance at } \\\text { end of period }\end{array} \\\hline \begin{array} { l } \text { Allowance for } \\\text { doubtful accounts }\end{array} & & & & \\\hline 2015 & \$ 40 & \$ 5 & \mathbf { ( \$ 2 3 ) } & \$ 22 \\\hline 2014 & \$ 51 & \$ 4 & \mathbf { ( \$ 1 5 ) } & \$ 40 \\\hline 2013 & \$ 46 & \$ 25 & \mathbf { ( \$ 2 0 ) } & \$ 51 \\\hline\end{array}

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