1 answer

Nature of Uncollectible Accounts MGM Resorts International owns and operates hotels and casinos including the MGM...

Question:

Nature of Uncollectible Accounts MGM Resorts International owns and operates hotels and casinos including the MGM Grand and t
Nature of Uncollectible Accounts MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $562,947,000 and allowance for doubtful accounts of $89,602,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, J&J reported accounts receivable of $11,260,000,000 and allowance for doubtful accounts of $275,000,000. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM. Round your answer to one decimal place. b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Johnson & Johnson. Round your answer to one decimal place. 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. cand d✓

Answers

Answer:

Requirement a.

Percentage of allowance for doubtful accounts = Allowance for doubtful accounts / Accounts Receivable

MGM Resorts = 89602000 / 562947000 = 15.91%

Requirement b.

Johnson & Johnson = 275000000 / 11260000000 = 2.44%

.

Similar Solved Questions

1 answer
10) Suppose you have a homework question asking you to find the volume of the solid that lies above the cone z-Vx2...
10) Suppose you have a homework question asking you to find the volume of the solid that lies above the cone z-Vx2 + yz and below the plane z = 9 using spherical coordinates. Find A, B, C, D, E and F so that the integral begins IBIDIF and ends with dρ dφ dθ 10) Suppose you have a home...
1 answer
Please elaborate as much as possible. Thank you in advance :) 2.1 Analysis and design of...
please elaborate as much as possible. Thank you in advance :) 2.1 Analysis and design of a buck-boost converter: A buck-boost converter is illustrated in Fig. 2.28(a), and a practical implementation using a transistor and diode is shown in Fig. 2.28(b Fig. 2.28 Buck-boost converter of Problem 2.1: ...
1 answer
Testbank Question 44: Planning Systems, Inc. has forecast the following unit sales and production for the...
Testbank Question 44: Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: Testbank Question 44 Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: Production Sales 1st 150 120 2nd 160 140 3r...
1 answer
Stoichiometry
f 1.000 g copper wire were reacted wtih 10.00 mL of concentrated nitric acid (16 M), which is the limiting reactant? How many moles are there for the limitingreactant? What percentage of the non-limiting reactant remains?...
1 answer
54-12 (similar to) Question Help The accounting records for ALB, Inc., reflected the following amounts at...
54-12 (similar to) Question Help The accounting records for ALB, Inc., reflected the following amounts at the end of July 2018 (Click the icon to view the accounts.) Prepare the classified balance sheet for ALB, Inc., at July 31, 2018. Use the report format. Begin by preparing the heading and comple...
1 answer
How do you simplify #(\root(3)(x+7) - \sqrt(x+3))/(x^2 - 3x +2)#?
How do you simplify #(\root(3)(x+7) - \sqrt(x+3))/(x^2 - 3x +2)#?...
1 answer
Learning Goal: To determine the state of stress in a solid rod using the principle of...
Learning Goal: To determine the state of stress in a solid rod using the principle of superposition. A solid rod has a diameter of e = 55 mm and is subjected to the loading shown. Let a = 190 mm, b = 220 mm , c = 350 mm, d = 240 mm , and P = 4.0 kN. Take point A to be at the top of the circular cros...
1 answer
14) Bugos Corporation is a service company that measures its output by the number of customers...
14) Bugos Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable Element per Revenue Employee salaries and wages Travel...
1 answer
Homework - Chapter 2 Saved 3 Exercise 2-3 Computing Total Job Costs and Unit Product Costs...
Homework - Chapter 2 Saved 3 Exercise 2-3 Computing Total Job Costs and Unit Product Costs Using a Plantwide Predeterminecd Overhead Rate [LO2-3] 14.28 points Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour...
1 answer
X Your answer is incorrect. Predict the major product for the following reaction Cl2 CI CI CI IV C
x Your answer is incorrect. Predict the major product for the following reaction Cl2 CI CI CI IV C...
1 answer
1. what is the difference between DNA binding and DNA cleavlage 2. why is DNA cleavage...
1. what is the difference between DNA binding and DNA cleavlage 2. why is DNA cleavage activity linked to anti cancer properties while DNA binding activity is linked to anti bacterial properties 3 what is the importance of DNA cleavage studdies...
1 answer
Question 9 5 pts Ordered: Give 2 tsp of Lomotil Rx only 2 FI Oz NDC...
Question 9 5 pts Ordered: Give 2 tsp of Lomotil Rx only 2 FI Oz NDC 0025-0066-02 Lomotil Liquid Each 5 ml contains: diphenoxylate hydrochloride USP 2.5 mg (Warning-May be habit forming) atropine sulfate USP 0.025 mg Ethyl alcohol 15% Special Note: Lomotil is not recommended for children under 2 year...
1 answer
Esign of an electromechanical product, 10 components are to be stacked into a casing in a manner that minimizes the impact of shocks. One end of the casing al cylindric designated as the bottom a...
esign of an electromechanical product, 10 components are to be stacked into a casing in a manner that minimizes the impact of shocks. One end of the casing al cylindric designated as the bottom and the other end is the top. . If all l components are different, how many different designs are possible...
1 answer
HR REASONING AND DECISION-MAKING EXERCISES Exercise 11.1: Applying Expectancy Theory to Understand Pay for Performance Three...
HR REASONING AND DECISION-MAKING EXERCISES Exercise 11.1: Applying Expectancy Theory to Understand Pay for Performance Three years ago, a large clothing retailer called La Ropa de Moda developed and implemented a new pay-for- performance program targeted at sales associates. The relatively new progr...
1 answer
2- ECD 3- ICP-AES 4- TCD 5- AAS 6- GLC 7- SHE 8- SEC Q4- What...
2- ECD 3- ICP-AES 4- TCD 5- AAS 6- GLC 7- SHE 8- SEC Q4- What kind of chromatography wil be most applicable to separate the following substances: (choose from the following: gas- liquid chromatography, liquid-solid partition chromatography, reversed phase partition chromatography, adsorption chromat...
1 answer
Paceheco Corporation uses the weighted average method in its process costing system. The Molding Department is...
Paceheco Corporation uses the weighted average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department operations in January Percent Complete with Respect to Conversion Beginning work in process inventor...
1 answer
A function is shown below. y = x - 3 +1 Which of the following represents...
A function is shown below. y = x - 3 +1 Which of the following represents the domain and range of 5"!(r)? Select one: Domain:{XER} OA Range:{ye R} Domain:{xER} OB Range:{y: yeR, y 2 3} Domain:{x:.XER X 2 1} Range:{y:ye R, y 2 3} Domain: {r: XER,X 23} C. CD. Range: {y: ye R, Y21}...
1 answer
Question2 45 In the figure above, an electron is released at 4.15x106 m/s and at an...
Question2 45 In the figure above, an electron is released at 4.15x106 m/s and at an angle of 45 degrees from the parallel-plate capacitor's positive side. If the electron lands at a distance of 4.60 cm away, what would be the strength of the electric field within the capacitor?...
1 answer
It the​ 1980s, it was generally believed that congenital abnormalities affected about 7​% of a large​...
It the​ 1980s, it was generally believed that congenital abnormalities affected about 7​% of a large​ nation's children. Some people believe that the increase in the number of chemicals in the environment has led to an increase in the incidence of abnormalities. A recent study ...