The Following Information Is from the Records of Armadillo Camera

question 32

Multiple Choice

The following information is from the records of Armadillo Camera Shop: $\begin{array}{|l|l|}\hline \text { Accounts receivable, } 31 \text { December } 2016 & \$ 85,000 \text { (debit) } \\\hline \text { Net credit sales for } 2016 & 160,000 \\\hline \text { Accounts written off as uncollectable during 2016 } & 15,000 \\\hline \text { Cash sales during 2016 } & 41,000 \\\hline\end{array}$ The company uses the direct write-off method for bad debts.What is the amount of bad debts expense?

• A)$15,000
• B)$85,000
• C)$60,000
• D)$41,000

---

Definitions:

Materials Requisitions

Documents that request the release of materials to be used in the production process or for other operational needs.

Recording Materials

The process of documenting raw materials, work-in-progress, and finished goods within a business.

Factory Supervisor's Salary

Represents the compensation paid to an individual who oversees the operations and workers in a factory setting.

Factory Overhead

This term refers to the indirect manufacturing costs that cannot be directly tied to specific units of production, such as maintenance, utilities, and management salaries.