The annual report for fallon holding corporation contained the following information: (in millions) 2016 2015 accounts receivable $ 671 $ 733 allowance for doubtful accounts 31 32 accounts receivable, net $ 640 $ 701 assume that accounts receivable write-offs amounted to $12 during 2016 and $2 during 2015, and that fallon did not record any recoveries. required: determine the bad debt expense for 2016 based on the above facts. (enter your answer in millions.)

bad debt expense for the year 2016: 11

Explanation:

We can solve for bad debt expense doing the following

beginning allowance

- write-off accounts

+ bad debt expense

Equals to ending allowance

We plug our values:

2016 Beginning  allowance      32

(Ending 2015)

write-off                                     (12)

bad debt expense                      ?  

2016 Ending  allowance            31

And solve for bad debt expense:

Bad debt expense = 12 + 31 - 32 = 11

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;