Using Financial Statement Disclosures to Infer Write-Offs and Bad Debt Expense and to Calculate the Receivables Turnover Ratio
Microsoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Microsoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).
 | June 30, 2008 | June 30, 2007  |
Accounts Receivable, Net of Allowances of $153 and $117 | $13,589 | $11,338 |
Net Revenues | 60,420 | 51,122 |
Accounts Receivable, Net of Allowances of $153 and $117 $13,589 $11,338
Net Revenues 60,420 51,122
According to its Form 10-K, Microsoft recorded Bad Debt Expense of $88 and did not recover any previously written off accounts during the year ended June 30, 2008.
Required:
1. What amount of accounts receivable was written off during the year ended June 30, 2008?
2. What was Microsoft’s receivables turnover ratio (to one decimal place) in the current year?