Historical Art Is a New Business

question 215

Multiple Choice

Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections on credit sales were $34,000. One account of $500 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. The ending balance of Allowance for Bad Debts account is ________.

• A) $1,000
• B) $1,500
• C) $465
• D) $2,505

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Definitions:

Listening Barrier

Anything that interferes with the ability to accurately perceive and interpret messages during the listening process.

Social Decentering

The cognitive process in which an individual strives to understand another person's perspective or point of view.

Interpersonal Communication

The process by which people exchange information, feelings, and meaning through verbal and nonverbal messages in face-to-face interactions.

Emotional Noise

Distractions or disturbances caused by strong emotions that interfere with the ability to listen or communicate effectively.