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Average Art Is a New Business

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Average Art is a new business.During its first year of operations,credit sales were $40,000 and collections of credit sales were $36,000.One account,$650,was written off.Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible.Prepare the entry to record bad debts expense.


Definitions:

Barbiturates

A class of drugs acting as central nervous system depressants, traditionally used for anesthesia, sedation, and as anticonvulsants.

THC

Tetrahydrocannabinol, the psychoactive compound found in cannabis that is responsible for its intoxicating effects.

Hyperthermia

A medical condition characterized by an abnormally high body temperature that exceeds the body’s capability to dissipate heat.

Water Intoxication

A potentially fatal disturbance in brain functions that results when the normal balance of electrolytes in the body is pushed outside of safe limits by excessive water intake.

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