Question

Explain the changes in the allowance for doubtful accounts from 2013 through 2015. Does it appear that Hewlett-Packard increased or decreased its allowance for doubtful accounts in any particular year beyond what seems reasonable?

Answer 1

The amount that was to be receivable in the year 2015 decreased and the balance of  allowance for doubtful accounts also decreased.

Explanation:

According to the information that was given, the amount that was receivable in 2014 was 13,832 million where as in the year 2015 it was 13,363 millions. The ending balance of allowance for doubtful accounts in 2014 was 232 million and in 2015 it was 189 millions.

All this information shows that the accounts and the amounts in the accounts decreased from the year 2014 to year 2015.