A Newly Created Design Business Called Smart Art Is Just

question 43

Multiple Choice

A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were credit sales of $40 000 and collections of $36 000. One account for $650 was written off. Smart Art uses the percentage- of- sales method to account for Bad debts expense, and has decided to use a factor of 2% for their year- end adjustment of Bad debts expense. At the end of the year, what is the balance in Bad debts expense?

• A)$150
• B)$1 450
• C)$800
• D)$250

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Definitions:

Sacrum

A large, triangular bone at the base of the spine, forming the upper part of the pelvic structure.

Axial Skeleton

Constitutes the central core of the human skeleton, comprising the skull, vertebral column, and rib cage.

Bones

The hard, dense connective tissue forming the structure of the skeleton of vertebrates, providing support and protection.

True Ribs

True ribs are the top seven pairs of ribs that are directly attached to the sternum through costal cartilages, providing protection to the thoracic cavity.