Smart Art Is a New Establishment

question 47

Essay

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 method to account for bad debts expense.It has calculated an amount of $200 as its estimate of uncollectible amounts at year-end.Prepare the journal entry required to record Bad debts expense at the end of the year.

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Definitions:

Obesity

A medical condition characterized by an excess of body fat to the extent that it may have a negative effect on health.

Hunger-Arousing Hormone

A chemical substance produced in the body that regulates hunger, such as ghrelin.

Orexin

A neurotransmitter that is crucial in controlling wakefulness, hunger, and levels of excitement.

Hypothalamus

A region of the brain responsible for the production of many of the body's essential hormones, regulating vital functions such as temperature, hunger, and thirst.