PLEASE REFER TO THE IMAGES PROVIDED, answer the boxes that are incorrect. 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.

MGM reported the following on its balance sheets.

a$.$ Analyze the allowance account for each of the four years by computing the ratio of the allowance to gross accounts receivable.

Note: Round the percentage to two decimal places $($for example, enter $14\mathrm{.}56\%$ for $14\mathrm{.}55555\%).$

b$.$ Reformulate the income statement and balance sheet accounts listed below for all four years to reflect the four$-$year average of the allowance to

gross accounts receivable. Assume that the tax rate is $22\%$ for all four years. Follow the process in Analyst Adjustments $5\mathrm{.}2$; income statement first,

followed by balance sheet.

Note: Do not round until your final answers; round your final answers to the nearest whole dollar.