Problem 7-5 Receivables; bad debts and returns; Symantec [LO7-4, LO7-5] Symantec Corp.

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Problem 7-5 Receivables; bad debts and returns; Symantec [LO7-4, LO7-5]

Symantec Corp., located in Cupertino, California, is one of the world’s largest producers of security and systems management software. The company’s consolidated balance sheets for the 2009 and 2008 fiscal years included the following ($ in thousands):

  20092008  Current assets:        Receivables, less allowances of $21,611 in            2009 and $23,934 in 2008$837,810 $758,600  

A disclosure note accompanying the financial statements reported the following ($ in thousands):

 Year Ended  20092008  (In thousands)  Trade accounts receivable, net:           Receivables$859,421 $782,534      Less: allowance for doubtful accounts (8,923) (8,975)     Less: reserve for product returns (12,688) (14,959)        Trade accounts receivable, net:$837,810 $758,600  

     Assume that the company reported bad debt expense in 2009 of $1,900 and had products returned for credit totaling $3,215 (sales price). Net sales for 2009 were $6,169,800 (all numbers in thousands).

Required:1.What is the amount of accounts receivable due from customers at the end of 2009 and 2008?(Enter your answers in thousands.)

  2009 2008  Accounts receivable$   $   

2.What amount of accounts receivable did Symantec write off during 2009? (Enter your answer in thousands.)

 Accounts receivable write off$   

3.What is the amount of Symantec’s gross sales for the 2009 fiscal year?(Enter your answer in thousands.)

  Gross sales$   

4.Assuming that all sales are made on a credit basis, what is the amount of cash Symantec collected from customers during the 2009 fiscal year? (Enter your answer in thousands.)

  Cash collections$