Nature of uncollectible accounts

MGM Resorts International $($MGM$)$ owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $$712,263,000$ and allowance for doubtful accounts of $$128,348,000.$ Johnson & Johnson $($JNJ$)$ manufactures and sells a wide range of healthcare products including Band$-$Aids and Tylenol. As of a recent year, J&J reported accounts receivable of $$15,513,000,000$ and allowance for doubtful accounts of $$230,000,000.$

a$.$ Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM$.$ Round your answer to one decimal place.

fill in the blank $1$ of $2\%$

b$.$ Compute the percentage of the allowance for doubtful accounts to the accounts receivable for J&J$.$ Round your answer to one decimal place.

fill in the blank $2$ of $2\%$

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$.$ 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.

d$.$ Casino operations experience greater bad debt risk because it is difficult to control the creditworthiness of customers entering the casino.