Smart Art Is a New Establishment

question 69

Multiple Choice

Smart Art is a new establishment. During the first year, there were credit sales of $40,000 and collections of credit sales of $36,000. One account for $650 was written off. The company decided to use the aging-of-receivables method to account for bad debts expense, and estimated $500 as uncollectible at year end. Therefore, the ending balance in the Allowance for Bad Debts would be:

• A)$150.
• B)$800.
• C)$200.
• D)$500.

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Definitions:

RDA

The Recommended Dietary Allowance, which is the average daily dietary intake level sufficient to meet the nutrient requirements of nearly all (97%-98%) healthy individuals.

Body Mass Index

A numerical measurement of a person's body weight in relation to their height.

Classified

Designated as confidential, secret, or top secret to protect national security or sensitive information.

Obese

A condition characterized by excessive body fat that presents a risk to health.