Now, focus exclusively on the casino business for MGM. The total provision for bad debts (i.e., bad debt expense) is shown in Exhibit 4 on the cash flow statement. Assume that bad debt expense related to the casino business is 95% of this total provision in each year. Using this information, along with the casino business accounts receivable and allowance balances in Exhibit 9, estimate the write offs that MGM recorded in each year from 2014 through 2016.

2014

Provision for doubtful accounts: 46,698

Provision for casino related doubtful accounts (BDE): 44,363.10

- Casino AR: $307,152,000

- Casino Allowance: $84,397,000

- Casino Allowance as % of AR: 27%

- % of Casino AR over 180 days: 24%

Estimation of write offs: ?????

Beginning allowance + BDE write offs = ending allowance

2015

Provision for doubtful accounts: 54,691

Provision for casino related doubtful accounts (BDE): 51,956.45

- Increased by 17.12%

- Casino AR: $285,182,000

- Casino Allowance: $86,010,000

- Casino Allowance as % of AR: 30%

- % of Casino AR over 180 days: 26%

Estimation of write offs: ?????

Beginning allowance + BDE write offs = ending allowance

2016

Provision for doubtful accounts: 10,863

Provision for casino related doubtful accounts (BDE): 10,319.85

- Decreased by 80.14%

- Casino AR: $332,443,000

- Casino Allowance: $92,424,000

- Casino Allowance as % of AR: 28%

- % of Casino AR over 180 days: 21%

Estimation of write offs: ?????

Beginning allowance + BDE write offs = ending allowance