Bbuts foor qrewers tic tire decinwh thate. Nature of Uncollectible Accounts The XYZ Corporation owns and operates hotels and casinos including the XYZ Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, XYZ to Patient Care manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Patient Care reported ace Round your answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for The XYz Corporation. of b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. c. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. c. Individuais who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the exc d. Casino operations experience greater bad debt risk, since'it is difficult to control the creditworthiness of customers entering the casino. Grand and the Bellagio in Las Vegas, Nevada. As of a recent vear, XYZ reported accounts receivable of $417,000 and allowance for doubtful accounts of 533,400 . dony Band-Aids and Tylenol, As of a recent year, Patient Care reported accounts receivable of 5967,000 and allowance for doubtful accounts of 519,340 . nts receivable for The Xerz Corporation. nta receivabie for Patient Care. indude: selves and lose more than they can afford if they get caught up in the excitement of gambling. trol the creditworthiness of customers entering the casino. The XYZ Corporation owns and operates hotels and casinos including the XYZ Grand and the Bellagio in Las Vegas, Nevada, As of a recent year, XYZ reported occounts recoivable of $417,000 and allowance for doubtful sccounts of $83,400. Paticnt Care manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Patient Care reported accounts teceivable of $967,000 and allowance for douhtful accounts of $19,340. Pound rour answers to one decimal place. a. Comaute the percentage of the allowance for doubtul accounts to the accounts receivable for The XYZZ Corporation. b. Cumbute the percentage of the allowance for doubtiul accounts to the accounts receivable for Patient Care. c. Possible teasons for the difference in the two ratios compated in (a) and (b) include: A. Casino operators histoncally lose money on operations. b. Casino operators have larger accounts receivable. c. Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of gambling. 4. Casino operations experience grester bad debt risk, since it is difficult to control the creditworthiness of customers entering the casino
