A Newly Created Design Business, Teri's Art, Is Finishing Its

question 150

Multiple Choice

A newly created design business, Teri's Art, is finishing its first year of operations. During the year, credit sales were $43,000 and collections of credit sales were $34,000. One account for $675 was written off. Teri's Art uses the aging-of-receivables method to account for bad debts expense. It has estimated $200 as uncollectible at year-end. What is the amount of the Bad Debts Expense for the first year of operations?

• A) $8,125
• B) $675
• C) $200
• D) $875

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Definitions:

Threat

A potential or actual danger that may cause harm or adverse effects on individuals, assets, or systems.

Delivery Schedules

Plans outlining when and how products or materials will be delivered to a specific location, often used in manufacturing and retail to ensure timely operations.

E-Commerce Strategies

Planned actions designed to promote and sell products or services through electronic channels, focusing on optimizing online presence and customer engagement.

Operational Planning

Detailed standards that guide implementation of tactical plans.