Business, 16.10.2020 04:01 laceytoyne72
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.
B. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Johnson & Johnson.
C. Possible reasons for the difference in the two ratios computed in (a) and (b) include:
1. Casino operators historically lose money on operations.
2. Casino operators have larger accounts receivable.
3. 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.
4. Casino operations experience greater bad debt risk because it is difficult to control the creditworthiness of customers entering the casino.
Answers: 2
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John's pizzeria and equilibrium john is selling his pizza for $6 per slice in an area of high demand. however, customers are not buying his pizza. using what you learned about the principles of equilibrium, write three to four sentences about how john could solve his problem.
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Almeda products, inc., uses a job-order costing system. the company's inventory balances on april 1, the start of its fiscal year, were as follows:
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Nature of Uncollectible Accounts
MGM Resorts International owns and operates hotels and casinos inc...
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