Smart Art Is a New Establishment

question 88

Multiple Choice

Smart Art is a new establishment. During the first year, there were credit sales of $40,000 and collections of credit sales of $36,000. One account for $650 was written off. The company decided to use the percent-of-sales method to account for bad debts expense, and decided to use a factor of 2% for their year-end adjustment of bad debts expense. At the end of the year, what is the ending balance in Accounts Receivable?

• A)$4,000
• B)$3,600
• C)$3,350
• D)$3,200

Recognize the structure and function of DNA and the process of mitosis in genetic continuity.

Differentiate between monozygotic and dizygotic twins and understand the factors influencing twin pregnancies.

Comprehend the significance of genetic research and its pioneers, such as Gregor Mendel, in understanding heredity.

Identify genetic disorders and understand the genetic basis of diseases like cystic fibrosis.

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Definitions:

Payback Period

The time duration required for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Simple Rate

A basic form of interest calculation representing a percentage of the principal amount over a certain period of time.

Payback Period

The payback period is the duration of time it takes to recover the cost of an investment. This metric is commonly used to assess the feasibility or profitability of a project.