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MGM Resorts International (MGM) owns and operates casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. For a recent year, the MGM

MGM Resorts International (MGM) owns and operates casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. For a recent year, the MGM Resorts International reported accounts and notes receivable of $633,116,000 and allowance for doubtful accounts of $92,571,000.

International Business Machines (IBM) provides information technology services, including software, worldwide. For a recent year, IBM reported notes and accounts receivable of $9,225,000,000 and allowance for doubtful accounts of $297,000,000.

a. Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable for MGM. Round your answer to one decimal place. fill in the blank 1 %

b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for IBM. Round your answer to one decimal place. fill in the blank 2 %

c. Which of the two companies would have a harder time determining the creditworthiness of its customers?

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