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A Year-End Review of Accounts Receivable and Estimated Uncollectible Percentages

question 92

Multiple Choice

A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following:   The credit balance in Allowance for Uncollectible Accounts was $5,700. Under aging-of-receivables method, the balance in the Allowance for Uncollectible Accounts will be ________ after the adjusting entry is made. A)  $1,500 B)  $4,100 C)  $5,300 D)  $6,300 The credit balance in Allowance for Uncollectible Accounts was $5,700. Under aging-of-receivables method, the balance in the Allowance for Uncollectible Accounts will be ________ after the adjusting entry is made.

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours spent on production and the expected (or standard) labor hours, multiplied by the standard labor rate.

Actual Total Labour Cost

The real amount spent on wages and benefits for employees involved in the production process during a specific period.

Standard Labour Rate

The pre-established rate per hour that a company expects to pay for direct labor.

Actual Units

The real quantity of items produced, sold, or consumed, as opposed to planned or theoretical quantities.

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