The MGM Mirage owns and operates casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. For a recent year, the MGM Mirage reported accounts and notes receivable of $452,945,000 and allowance for doubtful accounts of $90,024,000.

Johnson & Johnson manufactures and sells a wide range of health care products including Band-Aids and Tylenol. For a recent year, Johnson & Johnson reported accounts receivable of $9,444,000,000 and allowance for doubtful accounts of $193,000,000.

a. Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable for the MGM Mirage.

b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Johnson & Johnson.

c. Discuss possible reasons for the difference in the two ratios computed in (a) and (b).