Niagara Art Is a New Business

question 167

Multiple Choice

Niagara Art is a new business.During its first year of operations,credit sales were $44,000 and collections of credit sales were $33,000.One account,$625,was written off.Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible.Bad debts expense for the first year of operations is ________.

• A)$255
• B)$880
• C)$625
• D)$1,540

---

Definitions:

Personal

Relating to or concerning an individual person, private life, or specific individual interests.

Local

Pertaining to data or resources that are stored or processed on the user's own computer or network, as opposed to remote or cloud-based services.

Metropolitan

Relating to a large city or densely populated urban area.

Wide

Describes an expanse, distance across, or the broadness of something, often used to refer to physical dimensions or viewing angles.