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:

Visible Wavelengths

The portion of the electromagnetic spectrum that is visible to the human eye, typically ranging from about 380 to 750 nanometers.

Moisture

The presence of a liquid, especially water, often in trace amounts.

Interest

The feeling of wanting to know or learn about something or someone.

Perceive

The act of becoming aware of something through the senses.