Question l: Ram Ore Ram Oren Inc. (RO) conducts extensive hotel and gambling operations. A footnote in RO's 2014 annual report stated the following: Allowance for uncollectible gaming receivables are provided to reduce gaming receivables and revenues to amounts anticipated to be collected. Gaming receivables and the related allowance were as follows (in thousands) End of 2014 $ 3,475 1,107 End of 2013 $3,473 1,452 Gaming receivables Allowance for uncollectibles Receivables charged against allowances during period 1,147 1,467 Required: a. Prepare the ratio of Allowance for uncollectibles to Gaming receivables for the end of 2014 How do you think this ratio compares wi th those of other industries? Would this ratio differ markedly among various casino companies? Provide a short verbal answer b. What was the bad debt expense for 2014? Recently, the Supreme Court had a decision related to accrual accounting in casinos. The RS and several casinos, including RO, disagreed on when to recognize revenue and expenses for progressive slot machines. (These slot machines have no limit to the payoff. They pay a lucky winner the money others have put into the machine since the last payoff - less the house takeout. The longer since the last win, the larger the jackpot) Progressive slots pay, on average, every four to five months. Assume that as of December 31, 2014, $1,000,000 had been placed in such machine since its last payoff on September 20, 2014, The house takeout is 5%