Casino operators have larger accounts receivable. Casino operators historically lose money on operations. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Johnson & Johnson. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM Resorts International. As of a recent year, Johnson & Johnson reported accounts receivable of $14,346,000,000 and allowance for doubtful accounts of $248,000,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aid® bandages and Tylenol®. As of a recent year, MGM reported accounts receivable of $747,981,000 and allowance for doubtful accounts of $90,775,000.
MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada.
