Dean Art Is a New Business

question 55

Multiple Choice

Dean Art is a new business.During its first year of operations,credit sales were $41,000 and collections of credit sales were $38,000.One account,$725,was written off.Management uses the aging-of-receivables method to account for bad debts expense and estimated $525 as uncollectible at year end.The ending balance of the Allowance for Bad Debts is ________.

• A)$505
• B)$1,230
• C)$1,250
• D)$525

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Definitions:

Negative Affect

A state of feeling or mood characterized by negative emotions such as sadness, anxiety, or anger.

Transaction Quickly

The swift completion of a business deal or financial exchange, minimizing time and maximizing efficiency.

Predictor of Behaviour

An indicator or factor that can be used to forecast future actions or tendencies of individuals or groups.

Theory of Reasoned Action

A psychological theory that predicts an individual's behavior based on their intention to engage in that behavior, influenced by attitudes and societal expectations.