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 $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 accounts receivable 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. %
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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 $680,000 and allowance for doubtful accounts of $112,880. 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 $942,000 and allowance for doubtful accounts of $32,970 a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for The XYZ Corporation Round your answers to one decimal place. % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. Round your answers to one decimal place. %. Possible reasons for the difference in the two ratios computed in (a) and (b) include: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 accour 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-A 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.…Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. For a recent year, The XYZ Corporation reported accounts and notes receivable of $364,000 and allowance for doubtful accounts of $64,792. Patient Care manufactures and sells a wide range of health care products. For a recent year, Patient Care reported notes and accounts receivable of $819,000 and allowance for doubtful accounts of $41,769. Round your percentage answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable for The XYZ Corporation. % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. % c. Which of the two companies would have a harder time determining the creditworthiness of its customers? XYZ Corporation Patient Care
- Accounting for patient service revenue Ruby Ruth Hospital had the following transactions during the year ended December 31:1. The hospital provided services to patients insured by third-party payer A amounting to $9.0 millionat its established billing rates. The hospital’s prospective billing arrangement with this third partystipulates payment to the hospital of 70 percent of its established rates for services performed.All billings were paid during the year.2. The hospital provided services to patients insured by third-party payer B amounting to $5.4 millionat its established billing rates. Its retrospective billing arrangement with this third party stipulatesthat the hospital should receive payment at an interim rate of 90 percent of its established rates,subject to retrospective adjustment based on agreed-upon allowable costs. By year-end, B had paidall the billings. Before issuing its financial statements, the hospital estimated that the probableamount it will need to refund to B…nature of the uncollectible accountMGM Resorts International owns and operates hotels and casinos in using 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 account of $89,602,000. johnsonTeocalli Burritos owns a fleet of food delivery trucks that provide food services to a variety of local entertainment events. Management for the company provided you the following information pertaining to the accounts receivable aging schedule. Required: Using the percent of receivables method, what amount will Teocalli Burritos estimate as uncollectible accounts expense? Number of Days Past Due Current 0-30 31-60 01-90 Over 90 days Total Amount $ 820.000 260,000 130,000 91.000 36,000 Percent Uncollectible Accounts Expense 1% Uncollectible 3% 10% 30% 60%
- Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements for both companies for two recent years is as follows (in millions): Xavier LestradeSales $8,500,000 $4,585,000Credit card receivables—beginning 820,000 600,000Credit card receviables—ending 880,000 710,000a. Determine the (1) accounts receivable turnover and (2) the number of days’ sales in receivables for both companies. Round to one decimal place.b. Compare the two companies with regard to their credit card policies.Complete the acounting for the following Journal Entries: #2:Bigger corp has nurnerous clients they sell to on account. At 12/31/18, Bigger’s accounts receivable balance is $500,000and their balance in their Allowance for Bad Debt account is a credit balance of $15,000Based on past experience and other factors, the corp estimates that 8% of its account receivable is uncollectable after preparing an Aging of their A/Rec They determine this to be a material amount and therefore use the Allowance Methoda) prepare the accounting for estimating Bad Debt Exp under the Allowance Method b) show the Corp’s Net Realizable Value after (a) abovec) After accounting for their Allowance, on 7/1/1~ Bigger identifies Customer F to be written off. F owes then, $20,000 show the accounting for Cust F’s write-off under the Allowance Methodd) show the Corp’s Net Realizable Value after writing off Customer FPT Stone have a several list of customer with outstandin receivables in the year of 2018. Please see below the receivables detail at the end of the year 2018: Customer Days of Outstanding Outstanding Amount PT Twins 40 days IDR 24,000,000 Anchor Corp 31 days IDR 51,000,000 PT Bell 60 days IDR 89,000,000 PT Scott 180 days IDR 160,000,000 PT Stone company policy for allowance of uncollectible receivable allocation are as follow: 0-30 days, 10% 31-50 days , 20% 51 - 100 days, 40% > 100 days 90% Additional Information The balance of Allowance for Doutbul Account at the begininng of the year 2018 is IDR 6,300,000 in the debit Instruction a. Prepare the journal for allowance of uncollectiobel account for the year 2018 (Supported with the calculation) b. At the Feb 28 2019, PT Scott declare their inabillity to fulfill their obligation for theie payables. Prepare the journal for wirte off of the PT scott receivable! c. At the june 30 2019, PT Scott declare that they have…
- During its first year of operations, Cullumber Company had credit sales of $3,701,300; $657,200 remained uncollected at year-end. The credit manager estimates that $40,500 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the current assets section of the balance sheet for Cullumber Company. Assume that in addition to the receivables it has cash of $92,900, inventory of $131,400, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CULLUMBER COMPANYBalance Sheet (Partial) Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant…During its first year of operations, Sheridan Company had credit sales of $3,596,600; $660,700 remained uncollected at year-end. The credit manager estimates that $43,200 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Prepare the current assets section of the balance sheet for Sheridan Company. Assume that in addition to the receivables it has cash of $92,200, inventory of $134,100, and prepaid insurance of $8,100. (List Current Assets in order of liquidity.) SHERIDAN COMPANYBalance Sheet (Partial) $ $…A hospital provided $750,000 of billable services to noncapitated patients. Payment has not yet been received. When the transaction is recorded on the general ledger, cash (an asset) is increased by $750,000 and patient revenue is decreased by $750,000. True False