A Newly Created Design Business,Rhodes Art,is Finishing Its First Year

question 104

Multiple Choice

A newly created design business,Rhodes Art,is finishing its first year of operations.During the year,credit sales were $42,000 and collections of credit sales were $33,000.One account for $625 was written off.Smart Art uses the aging-of-receivables method to account for bad debts expense.It has estimated $250 as uncollectible at year-end.What is the amount of the Bad Debts Expense for the first year of operations?

• A)$8,125
• B)$625
• C)$250
• D)$875

---

Definitions:

Difficult Babies

A temperament category describing infants who are frequently fussy, hard to soothe, and often irregular in their feeding and sleeping patterns.

Activity Levels

The degree of physical or mental exertion displayed by an individual, often varying between different people and contexts.

New Situations

Scenarios or environments that are novel or unfamiliar to an individual, requiring adaptation or response.

Irritability

Irritability is a state of increased sensitivity or responsiveness to stimuli, often resulting in easy annoyance or agitation.