Question 8 Menlo Hospital has the following accounts receivable aging schedule:

	Current (< 30 days)	31-60 days due	61+ days due
Medicare/Medicaid	420,000	230,000	325,000
Out-of-Pocket	250,000	110,000	4,500,000
Private Insurance	1,250,000	265,000	150,000

a. Which accounts receivable(s) appear to be the most problematic for Menlo? Why?

b. Circle either MORE or LESS in the sentence below: The older the account receivable, the MORE / LESS likely it will be collected.