A Newly Created Design Business Called Smart Art Is Just

question 128

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 credit sales of $36,000. One account for $650 was written off. Smart Art uses the aging method to account for uncollectible account expense. It has estimated $200 as uncollectible at year-end. At the end of the year, what is the ending balance in the Bad Debts Expense account?

• A)$1,150
• B)$800
• C)$200
• D)$850

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Definitions:

Ethnographic Interview

A qualitative research method involving interactive interviews in the natural settings of the participants, aiming to gather deep insights into cultural practices, beliefs, and social interactions.

Knowledge

Information, understanding, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Attitudes

Mental and emotional entities that embody an individual's degree of like or dislike for an item, which influence their thoughts and behavior toward it.

Reliability

Is the degree to which procedures yield consistent results.