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 $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000. b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable, for Johnson & Johnson. Round to one decimal place.

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018:

Instructions

1. Prepare a multiple-step income statement.
2. Prepare a retained earnings statement.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.
4. Briefly explain how multiple-step and single-step income statements differ.

The income statement for the month of February indicates a net income of $17,500. During the same period,$25,500 in cash dividends were paid. Would it be correct to say that the business incurred a net loss of $8,000 during the month? Discuss.

Assume that the seller owes $\$ 80,000$ on a loan for the land. After receiving the $\$ 298,000$ cash in (a), the seller pays the $\$ 80,000$ owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity?

A vacant lot acquired for $\$ 115,000$ is sold for $\$ 298,000$ in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity?

A vacant lot acquired for $115,000 is sold for$298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity?

Classify each item as an operating, investing, or financing activity. Assume all items involve cash unless there is information to the contrary and the indirect method is used. (a) Purchase of equipment.

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of$1,350 as uncollectible. Dec. 20. Reinstated the account of Rachel Elpel and received $1,350 cash in full payment.

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 $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM Resorts International. Round to one decimal place.

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Feb. 12. Received $800 from Leo Jorgenson and wrote off the remainder owed of$2,400 as uncollectible. May 3. Reinstated the account of Leo Jorgenson and received $2,400 cash in full payment.

Use the data in previous exercise to analyze the accounts receivable turnover ratios of H.J. Heinz Company and The Limited Brands Inc. c. Explain the logic underlying your answer in (b).

Use the data in previous exercise to analyze the accounts receivable turnover ratios of H.J. Heinz Company and The Limited Brands Inc. b. Does The Limited Brands or H.J. Heinz Company have the higher average accounts receivable turnover ratio?

Use the data in previous exercise to analyze the accounts receivable turnover ratios of H.J. Heinz Company and The Limited Brands Inc. a. Compute the average accounts receivable turnover ratio for The Limited Brands Inc. and H.J. Heinz Company for the years shown in Exercises 8-27 and 8-28.

The Limited Brands Inc. sells women’s clothing and personal health care products through specialty retail stores including Victoria’s Secret and Bath & Body Works stores. The Limited Brands reported the following (in millions) for two recent years:

$$\begin{array}{lcr} &\textbf{Year 2}&\textbf{Year 1}\\ \hline \text{Net sales}&\$9,613&\$8,632\\ \text{Accounts receivable}&267&249 \end{array}$$

Assume that accounts receivable (in millions) were $313 at the beginning of Year 1. c. What conclusions can be drawn from these analyses regarding The Limited Brands’ efficiency in collecting receivables?