Mgm Mirage—Accounts Receivable

MGM MIRAGEACCOUNTS RECEIVABLE 1.Gross casino accounts due. Be make out in Exhibit 1a, bring in accounts receivable are consisted of three separate of accounts receivable which includes 174,713, and adept complete allowance for dubitable accounts. So $174,713 is a unprocessed number. 2.a. The entirety flip of allowance for questionable accounts is consisted of three parts: Writeoffs pull up stakes cause debits; recoveries pull up stakes cause credits; big(p) debts depreciates forget cause debits or credits. So we have the following equation: channelise in allowance for ambiguous accounts= worse debts expense-net writeoffs therefore, net writeoffs= bad debts expense- change in allowance for provisionary accounts. Writeoffs of 2003=12,570*95%-(75,265-85,504)=$22,181 Writeoffs of 2004=(-3,629)*95%-(57,111-75,265)=$14,706 b. Writeoffs ordain decrease the amount of allowance for doubtful accounts and accounts receivable at the same time, so there is no preserve on the amount of net accounts receivable and score assets. Recoveries will increase the amount of bills and allowance for doubtful accounts, so the amount of net accounts receivable will decrease. however the total assets in any case wont change. And neither writeoffs nor the recoveries will have an impress on the income statements. 3.

There are fin accounts involved in transactions of accounts receivable: accounts receivable, allowance for doubtful accounts, bad debts expense, sales, and coin. So we have the following equation: change in cash+(change in accounts receivable-change in allowance for doubtful accounts) =sale s bad debt expense Now we calculate the cas! h show of 2003 measure by step. substitute in accounts receivable=159,569-166,612=-$7,043 Change in allowance for doubtful accounts=75,265-85,504=-$10,239 Sales=2,037,514*40%=$815,006 self-aggrandizing debt expense=12,570*95%=$11,942 Cash collections of 2003=(815,006-11,942)-[(-7,043)-(-10,239)]=$799,868 We can calculate the cash collections of 2004 in the same way. Cash collections of 2004 =...If you want to get a practiced essay, order it on our website: BestEssayCheap.com

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