Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $2,790 from William Pruitt and wrote off the remainder owed of $4,600 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of William Pruitt and received $4,600 cash in full payment. Reinstate Collection Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables. Mar. 17: Received $2,780 from Keith MacPhearson and wrote off the remainder owed of $1,750 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Keith MacPhearson and received $1,750 cash in full payment. Reinstate Collection 0 0 Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. As of a recent year, The XYZ Corporation reported accounts receivable of $622,000 and allowance for doubtful accounts of $97,654. Patient Care manufactures and sells a wide range of health care products. As of a recent year, Patient Care reported accounts receivable of $885,000 and allowance for doubtful accounts of $20,355. Round your answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for The XYZ Corporation. % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. % c. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. c. Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of gambling. d. Casino operations experience greater bad debt risk, since it is difficult to control the creditworthiness of customers entering the casino