The Following Information Is from the Records of Pangolin Camera

question 81

Multiple Choice

The following information is from the records of Pangolin Camera Shop: Bad expense is estimated by the aging-of-receivables method. Management estimates that $2,950 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts.

• A) $22,950
• B) $22,050
• C) $21,150
• D) $20,800

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Definitions:

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production process, used as a basis for allocating labor costs to products.

Forming Department

A section within a manufacturing facility where materials are shaped or formed into parts or products.

Assembly Department

A section in a manufacturing facility where components are assembled into final products.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service, often used to allocate manufacturing overhead.