A Newly Created Design Business Called Smart Art Is Just

question 135

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 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 ending balance in Accounts receivable?

• A) $4,000
• B) $36,000
• C) $3,350
• D) $39,350

Identify the characteristics and normal balances of various account types (assets, liabilities, owner's equity, revenues, and expenses).

Realize the significance of the trial balance in confirming the mathematical equality of debits and credits in the accounting system.

Recognize the procedural steps in the recording process, including analyzing, journalizing, and posting transactions.

Understand error detection through trial balance preparation and its limitations.

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Definitions:

Dual-career Partnership

A relationship where both partners maintain their own professional careers, balancing work and personal life.

Stress

A physical or psychological response to internal or external pressures or challenges.

Strains

Refers to the physical or psychological stress and pressure that can arise from challenging or adverse conditions, often leading to negative health outcomes.

Realistic Job Previews

A technique used in the recruiting process that provides potential employees with a truthful view of what working in the job will be like, including both positive and negative aspects.