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.
How do you calculate the percentage of the allowance for doubtful accounts to the accounts receivable for MGM?
How do you calculate the percentage of the allowance for doubtful accounts to the accounts receivable for Johnson & Johnson?