59) 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.

Bad debts expense and estimates800  

Allowance for Doubtful Accts                800

Allowance for Doubtful Accts        650  

Accounts receivable account                 650

Explanation:

A=Credit sales40000

B=Percent-of-sales method to account for bad debts expense and estimates2%

Bad debts expense and estimates = AxB

                                                          =40000x2%

                                                           =800

You must remember to register the writte off. $650.

answer; buyer guide;

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.