Smart Art Is a New Establishment

question 78

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. The ending balance in Allowance for Bad Debts account would be:

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

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Definitions:

Acute Grief

This refers to the intense, initial phase of grief experienced shortly after a loss, characterized by profound sadness, longing, and possibly shock or disbelief.

Clinical Depression

A mental disorder identified by ongoing feelings of sadness or a disinterest in activities, leading to considerable disruption in daily activities.

Emotional Nurturance

The act of supporting and fostering a person’s emotional development and well-being.

Interpersonal Disappointments

Feelings of sadness or displeasure caused by the belief that one's personal relationships are not meeting the expected standards or needs.