Etruscan Railing Company Makes Railing That Is Used in Sports

question 66

Multiple Choice

Etruscan Railing Company makes railing that is used in sports arenas,nursing home corridors,amusement parks,and many other places that are not as obvious.Its railing is moulded into bicycle racks.Governments use the railing to make walkways over ravines and creek banks safer for pedestrian traffic.Hospitals use the railing in their physical therapy departments,to keep the lines straight in the hospital cafeteria,and to prevent patients from falling out of hospital beds.
-Refer to Etruscan Railing Company.When Etruscan sells railing to contractors to use in making loading docks safer in accordance with federal government regulations,which of the following is it selling to?

• A) producers
• B) resellers
• C) institutions
• D) consumers

---

Definitions:

Bad Debt Expense

An income statement item reflecting the cost associated with the estimated uncollectible accounts receivable.

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collected, recognized as a contra asset account.

Cash Realizable Value

The net amount of cash expected to be received from receivables, after accounting for allowances for doubtful accounts.

Accounts Receivable

Debts owed by customers to a company for delivered goods or performed services that remain unpaid.