A Newly Created Design Business Called Smart Art Is Just

question 154

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 aging method to account for uncollectible account expense,and has calculated an amount of $200 as their estimate of uncollectible amounts at year-end.
-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

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Definitions:

Dividend Paying

Describes stocks or securities that regularly distribute a portion of the issuing company's earnings to shareholders.

Strike Call

A term likely meant to be "Call Strike Price," which is the set price at which an option holder can buy an underlying asset.

Interest Rate

Interest Rate is the cost of borrowing funds or the return on investment for savings, expressed as a proportion of the principal, usually displayed on an annual basis.

Expiration

The point in time when a financial contract such as an option or futures contract ceases to exist.