Question

The 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. (in millions) 2016 2015 Allowance for doubtful accounts $7.2 $9.3 Total accounts and other receivables, net $486.6 $520.2 What are the company’s current gross accounts and other receivables at the end of 2016? Select one: A. $486.6 million B. $479.4 million C. $452 million D. $493.8 million E. None of the above

Answer 1

Answer:

Option (D) is correct.

Explanation:

Given that,

In 2016,

Allowance for doubtful accounts = $7.2 million

Total accounts and other receivables, net = $486.6 million

In 2015,

Allowance for doubtful accounts = $9.3 million

Total accounts and other receivables, net = $520.2 million

Therefore,

Company’s current gross accounts and other receivables at the end of 2016:

=  net receivable(2016) + allowance for doubtful(2016)

= $486.6 + $7.2

= $493.8