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

A newly created design business,Rhodes Art,is finishing its first year of operations.During the year,credit sales were $45,000 and collections of credit sales were $33,000.One account for $675 was written off.Smart 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) $11,125
B) $675
C) $200
D) $875