Mgm Mirage—Accounts Receivable

MGM MIRAGEACCOUNTS RECEIVABLE 1.Gross casino accounts due. Be face in Exhibit 1a, bring in accounts receivable are consisted of three separate of accounts receivable which includes 174,713, and cardinal complete allowance for dubitable accounts. So $174,713 is a piggy 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; seriously debts costs forget cause debits or credits. So we have the following equation: swop in allowance for ambiguous accounts= severely 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 pull up stakes decrease the pith of allowance for doubtful accounts and accounts receivable at the same time, so there is no wallop 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 too wont change. And neither writeoffs nor the recoveries will have an touch on 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 bills. So we have the following equation: change in cash+(change in accounts receivable-change in allowance for doubtful accounts) =sales bad debt expense Now we calculate the cash show of 2003 gait by step. substitute in accounts receivabl! e=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 right essay, order it on our website: OrderEssay.net

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