Hilton Hotels Corporation owns and operates casinos at several of its hotels, located primarily in Nevada. At the end of a fiscal year, the following accounts and notes receivable were reported (in thousands):

a. Compute the percentage of allowance for doubtful accounts to the gross hotel accounts and notes receivable for the end of the fiscal year.
b. Compute the percentage of the allowance for doubtful accounts to the gross casino accounts receivable for the end of the fiscal year.
c. Discuss possible reasons for the difference in the two ratios computed in (a) and(b).

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$75,796 3,256 Hotel accounts and notes receivable Less: Allowance for doubtful accounts $72,540 Casino accounts receivable $26,334 6,654 Less: Allowance for doubtful accounts 19,680