Smart Calendars Is a New Business

question 42

Essay

Smart Calendars 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.Using the aging-of-receivables method,management calculates $200 as its estimate of uncollectible amounts at year end.Prepare the journal entry to record bad debts expense.

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Definitions:

Stipule Cells

Cells found at the base of the petiole in some plants, forming a structure known as a stipule, which may protect budding leaves or other functions.

Waxy Layers

Protective coatings found on the surfaces of plants and some insects, preventing water loss and providing defense against pests.

Mesophyll Cells

Specialized cells in plant leaves where photosynthesis takes place.

Intercellular Spaces

Gaps or areas between individual cells within a tissue, which allow for the exchange of gases and the transfer of nutrients and waste.