Smart Art Is a New Establishment

question 67

Essay

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 use a factor of 2% for their year-end adjustment of bad debts expense. Prepare the entry to record the bad debt expense.

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Definitions:

Graphic Rating Scale

A graphic rating scale is a method for assessing attitudes or behaviors, involving marks at fixed intervals along a line to denote rating levels.

Behavior Rating Scale

A tool used to assess behaviors through standardized ratings, often utilized in evaluating children's behavior in academic and clinical settings.

Strengths-Based Leadership

A leadership strategy focusing on identifying and maximizing individuals' unique strengths rather than solely improving weaknesses.

Checklist

A list of items or tasks to be checked or done, often used as a reminder or to ensure consistency and completeness in carrying out tasks.