Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. For a recent year, The XYZ Corporation reported accounts and notes receivable of $535,000 and allowance for doubtful accounts of $110,745. Patient Care manufactures and sells a wide range of health care products. For a recent year, Patient care reported notes and accounts receivable of $950,000 and allowance for doubtful accounts of $15,200. 1515,200. Round your percentage answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable for The XYZ Corporation b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. c. Which of the two companies would have a harder time determining the creditworthiness of its customers? Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a balance of $725,000 and sales for the year total $8,220,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions: The allowance account before adjustment has a negative balance of $(9,800). Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a negative balance of $(9,800). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $31,400. The allowance account before adjustment has a positive balance of $9,000. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a positive balance of $9,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $74,700 During its first year of operations, Fisher Plumbing Supply Co. had sales of $260,000, wrote off $3,000 of accounts as uncollectible using the direct write-off method, and reported net income of $28,600. Assume that during the second year of operations Fisher Plumbing Supply Co. had sales of $312,000, wrote off $3,600 of accounts as uncollectible using the direct write-off method, and reported net income of $31,200. a. Determine what net income would have been in the second year if the allowance method (using 1 1/4% of sales) had been used in both the first and second years. b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years