The Following Information Is from the 2017 Records of Albert

question 5

Multiple Choice

The following information is from the 2017 records of Albert Book Shop: $\begin{array}{|l|r|}\hline\text { Accounts receivable, December } 31,2017 & \$ 47,000 \text { (debit } \\\hline \text { Allowance for Bad Debts, December 31,2017 } \\\text { prior to adjustment }& 1,900 \text { (debit } \\\hline \text { Net credit sales for 2017 }& 180,000 \\\hline \text { Accounts written off as uncollectible during } \\2017 & 17,000 \\\hline \text { Cash sales during } 2017 & 28,000\\\hline \end{array}$ Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5,500 of accounts receivable will be uncollectible.Calculate the amount of bad debts expense for 2017.

• A)$5,500
• B)$7,400
• C)$3,600
• D)$5,750

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Definitions:

Managerial Accounting

The use of accounting techniques to provide information designed to assist managers in making decisions about the business.

Production Shift Data

Information regarding the output, workforce, and operations during a specific work shift in production.

Performance Targets

Levels or rates of improvement that management wants to achieve for performance metrics.

Employee Incentives

Rewards or benefits offered to employees to motivate them and improve their job performance.