A Newly Created Design Business Called Smart Art Is Just

question 128

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 credit sales of $36,000. One account for $650 was written off. Smart Art uses the aging method to account for uncollectible account expense. It has estimated $200 as uncollectible at year-end. At the end of the year, what is the ending balance in the Bad Debts Expense account?

• A)$1,150
• B)$800
• C)$200
• D)$850

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Definitions:

Inner Layer

Describes the innermost part or section of something, often referring to materials, substances, or biological structures.

Outer Layer

The external surface or coating of an object or material.

Ileostomy

A surgical opening from the ileum onto the abdominal wall.

Ileum

The last section of the small intestine.