Module $5HW$

Reformulating Allowance for Doubtful Accounts

MGM International operates casinos and resorts across the U$.$S$.$ and in China. The company reported the following in its SEC filings.

We maintain an allowance for doubtful casino accounts at all of our operating casino resorts. The provision for doubtful accounts, an operating expense, increases the allowance for doubtful accounts. We regularly evaluate the allowance for doubtful casino accounts. At domestic resorts where marker play is not significant, the allowance is generally established by applying standard reserve percentages to aged account balances. At domestic resorts where marker play is significant, we apply standard reserve percentages to aged account balances under a specified dollar amount and specifically analyze the collectability of each account with a balance over the specified dollar amount, based on the age of the account, the customer's financial condition, collection history and any other known information. MGM China specifically analyzes the collectability of casino receivables on an individual basis taking into account the age of the account, the financial condition and the collection history of the gaming promoter or casino customer.

$\backslash$table$[[$Schedule II$-$Valuation and Qualifying Accounts$],[\backslash$table$[[$Allowance for doubtful$],[$accounts$],[($In Thousands$)]],\backslash$table$[[$Balance at$],[$Beginning$],[$of Period$]],\backslash$table$[[$Provision$],[$for Doubtful$],[$Accounts$]],\backslash$table$[[$Write$-$offs,$],[$Net of$],[$Recoveries$]],\backslash$table$[[$Balance$],[$at end of$],[$Period$]]],[$Year ended December $31,2019,$$$90,775,$$$39,270,$$$(35,484),$$$94,561$

Module $5$ HW

Reformulating Allowance for Doubtful Accounts

MGM International operates casinos and resorts across the U$.$S$.$ and in China. The company reported the following in its SEC filings.

We maintain an allowance for doubtful casino accounts at all of our operating casino resorts. The provision for doubtful accounts, an operating expense, increases the allowance for doubtful accounts. We regularly evaluate the allowance for doubtful casino accounts. At domestic resorts where marker play is not significant, the allowance is generally established by applying standard reserve percentages to aged account balances. At domestic resorts where marker play is significant, we apply standard reserve percentages to aged account balances under a specified dollar amount and specifically analyze the collectability of each account with a balance over the specified dollar amount, based on the age of the account, the customer's financial condition, collection history and any other known information. MGM China specifically analyzes the collectability of casino receivables on an individual basis taking into account the age of the account, the financial condition and the collection history of the gaming promoter or casino customer.

$\backslash$table$[[$Schedule II $-$ Valuation and Qualifying Accounts$],[\backslash$table$[[$Allowance for doubtful$],[$accounts$],[($In Thousands$)]],\backslash$table$[[$Beginning$],[$of Period$]],\backslash$table$[[$for Doubtful$],[$Accounts$]],\backslash$table$[[$Write$-$offs,$],[$Net of$],[$Recoveries$]],\backslash$table$[[$at end of$],[$Period$]]],[$Year ended December $31,2019,$$$90,775,$$$39,270,$$$(35,484),$$$94,561$