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1 Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. For a recent year, The XYZ Corporation reported accounts and notes receivable of
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Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. For a recent year, The XYZ Corporation reported accounts and notes receivable of $666,000 and allowance for doubtful accounts of $138,528. Patient Care manufactures and sells a wide range of health care products. For a recent year, Patient Care reported notes and accounts receivable of $976,000 and allowance for doubtful accounts of $33,184. Round your percentage answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable for The XYZ Corporation. b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. c. Which of the two companies would have a harder time determining the creditworthiness of its customers? XYZ Corporation Patient Care Step by Step Solution
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