Nature of Uncollectible AccountsThe XYZ Corporation owns and operates hotels and casinos including the XYZ Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, XYZreported accounts receivable of $562,000 and allowance for doubtful accounts of $119,144.Patient Care manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Patient Care reported accountsreceivable of $949,000 and allowance for doubtful accounts of $33,215.Round your answers to one decimal place.a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for The XYZ Corporation.%b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care.%

a. accounts receivable = 562,000allowance for doubtful accounts = 119,144 Percentage = 119,144 /…

Answered: Nature of Uncollectible Accounts The…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 5CP

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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 $350,000 and allowance for doubtful accounts of $53,550. Patient Care manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Patient Care reported accounts receivable of $929,000 and allowance for doubtful accounts of $35,302. Round your answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for The XYZ Corporation.fill in the blank 1 % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care.fill in the blank 2 % c. Possible reasons for the difference in the two ratios computed in (a) and (b) include: Casino operators historically lose money on operations. Casino operators have larger accounts…
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