eBook Show Me How Calculator 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 receivable of $676,000 and allowance for doubtful accounts of $132,496. Patient Care manufactures and sells a wide range of healthcare products including Band-Aids® bandages and Tylenol®. As of a recent year, Patient Care reported accounts receivable of $891,000 and allowance for doubtful accounts of $30,294. Round all amounts to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for the XYZ Corporation. 16.6 X % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. 3.3 X % C. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. C. Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of gambling. d. Casino operations experience greater bad debt risk because it is difficult to control the creditworthiness of customers entering the casino. c and d v Feedback Check My Work Recall that the percent of the allowance for doubtful accounts to total accounts receivable will vary across companies and industries based on their risks. Consider the differences in the two businesses and their operations. Which type of operation would you consider to have the greater risk and why? Check My Work Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading MAY 1 átv 3D
eBook Show Me How Calculator 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 receivable of $676,000 and allowance for doubtful accounts of $132,496. Patient Care manufactures and sells a wide range of healthcare products including Band-Aids® bandages and Tylenol®. As of a recent year, Patient Care reported accounts receivable of $891,000 and allowance for doubtful accounts of $30,294. Round all amounts to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for the XYZ Corporation. 16.6 X % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. 3.3 X % C. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. C. Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of gambling. d. Casino operations experience greater bad debt risk because it is difficult to control the creditworthiness of customers entering the casino. c and d v Feedback Check My Work Recall that the percent of the allowance for doubtful accounts to total accounts receivable will vary across companies and industries based on their risks. Consider the differences in the two businesses and their operations. Which type of operation would you consider to have the greater risk and why? Check My Work Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading MAY 1 átv 3D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A & B answers?
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Show Me How
Calculator
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
receivable of $676,000 and allowance for doubtful accounts of $132,496. Patient Care manufactures and sells a wide range of healthcare products including Band-Aids®
bandages and Tylenol®. As of a recent year, Patient Care reported accounts receivable of $891,000 and allowance for doubtful accounts of $30,294.
Round all amounts to one decimal place.
a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for the XYZ Corporation.
16.6 X %
b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care.
3.3 X %
C. Possible reasons for the difference in the two ratios computed in (a) and (b) include:
a. Casino operators historically lose money on operations.
b. Casino operators have larger accounts receivable.
C. Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of
gambling.
d. Casino operations experience greater bad debt risk because it is difficult to control the creditworthiness of customers entering the casino.
c and d v
Feedback
Check My Work
Recall that the percent of the allowance for doubtful accounts to total accounts receivable will vary across companies and industries based on their risks. Consider
the differences in the two businesses and their operations. Which type of operation would you consider to have the greater risk and why?
Check My Work
Previous
Next
All work saved.
Email Instructor
Save and Exit
Submit Assignment for Grading
MAY
1
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3D
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