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 reported accounts receivable of $722,000 and allowance for doubtful accounts of $129,238. Patient Care manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Patient care reported accounts receivable of $876,000 and allowance for doubtful accounts of $39,420. 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. % 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. 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, since it is difficult to control the creditworthiness of customers entering the casino. Estimating Allowance for Doubtful Accounts Evers Industries has a past history of uncollectible accounts, as follows. Percent Uncollectible 1 % 3 Age Class Not past due 1-30 days past due 31-50 days past due 61-90 days past due Over 90 days past due 12 30 75 Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below. Evers Industries Estimate of Allowance for Doubtful Accounts Balance Not Past Days Past Days Past Days Past Days Past Due Due 1-30 Due 31-60 Due 51-90 Due Over 90 Total receivables 1,124,500 607,400 233,000 121,600 96,500 66,000 Percentage uncollectible 1% 3% 12% 30% Allowance for doubtful accounts 75%