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Smart Art Is a New Establishment

question 72

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 aging method to account for bad debts expense. It has calculated an amount of $200 as their estimate of uncollectible amounts at year-end. Prepare the journal entry required to record Bad debts expense at the end of the year.


Definitions:

Annual Number

A quantity or statistic that is reported or measured once every year.

Live Births

The number of babies born alive in a given time period and region.

Demographic Transition Theory

A concept explaining how a nation moves from having high birth and death figures to low ones as it progresses from a pre-industrial to an industrial economic system.

Preindustrial

pertains to the period or society before the widespread adoption of industrialization, characterized by agrarian economies and limited technological advancement.

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