A Newly Created Design Business Called Smart Art Is Just

question 46

Multiple Choice

A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were credit sales of $40 000 and collections of $36 000. One account for $650 was written off. Smart Art uses the ageing- of- accounts method to account for Bad debts expense, and has calculated an amount of $200 as their estimate of uncollectable amounts at year- end. At the end of the year, what is the ending balance in the Allowance for doubtful debts?

• A)$1 450
• B)$800
• C)$150
• D)$200

Recognize the effects of the global economy on business operations and individual workers.

Understand the processes of empowerment and decentralization in decision-making.

Comprehend the relevance of campaign financing and legal issues in corporate governance.

Analyze the importance and impact of business cycles on managerial decisions and business performance.

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Definitions:

Labor Costs

The total expenses associated with employing staff, including wages, benefits, and taxes.

Transportation Costs

Expenses associated with moving goods from one location to another within the supply chain.

Chinese Yuan

The official currency of the People’s Republic of China, which is issued by the People's Bank of China.

Labor Dispute

A disagreement between employees and employers over workplace conditions, wages, hours, or other labor-related issues, often leading to negotiations or strikes.