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

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Definitions:

Poor Management

Ineffective or inefficient leadership and organizational practices that can lead to decreased productivity, morale, and overall success.

Co-Worker Hostility

Refers to negative behaviors and attitudes displayed by employees towards their colleagues, leading to a tense and uncooperative work environment.

Behavior In Organizations

The actions and interactions of individuals within a work setting, influenced by the organizational culture, structure, and processes.

Multifaceted

Refers to something having many aspects or sides.