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A Newly Created Design Business Called Smart Art Is Just

question 74

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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 percent-of-sales method to account for uncollectible account expense,and has decided to use a factor of 2% for their year-end adjustment of uncollectible account expense.
-At the end of the year,what is the balance in Uncollectible account expense?

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Definitions:

Avoided

Refers to something deliberately not done or engaged with.

Misconception

A mistaken belief or incorrect understanding about something.

Engaged

Being actively involved or committed to an activity, cause, or task.

Heated Conversations

Discussions that are intense, passionate, or angry, often leading to raised voices or strong emotions.

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