A Newly Created Design Business Called Smart Art Is Just

question 74

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 balance in Uncollectible account expense?

• A) $150
• B) $800
• C) $250
• D) $1,450

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Definitions:

Ideals

Principles or values that one actively pursues as goals or standards of perfection.

Assumptions

Beliefs or ideas taken for granted without proof in research or argumentation.

Authority-Oriented

Characterized by a focus on following orders, respecting hierarchy, and valuing leadership and structure in decision-making contexts.

Individual-Oriented

Focused on or aimed at the needs, well-being, or interests of a single person rather than those of a group or community.