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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
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 recevable of $565.000 and allowance for doubtful accounts of $100,495. Patient Care manufactures and sells a wide range of healthcare products including Band Alas bandages and Tylenol Asct a recent year, Patient care reported accounts receivable of $921,000 and allowance for doubts accounts of $13,815. Round all amounts to are 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 douterul accounts to the accounts receivable for Patient care. C. Possibil reasons for the difference in the two ratios compated in (a) and (b) include: a Casino operators historically lose money on operations, D. Casino operators have larger accounts receivable t. Individuals who may have adequate creditworthiness could overextend themselves and one more than they can afford if they get caught up in the excitement of gambling d. Catino operations experience greater dad oebt nisk because it is difficult to control the creditworthiness of customers entering the casino a and X
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