A Newly Created Design Business Called Smart Art Is Just

question 135

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 $36,000.One account for $650 was written off.Smart Art uses the percent-of-sales method to account for uncollectible account expense,and has decided to use a factor of 2% for their year-end adjustment of uncollectible account expense.
-At the end of the year,what is the ending balance in Accounts receivable?

• A) $4,000
• B) $36,000
• C) $3,350
• D) $39,350

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Definitions:

Social Mobility Belief System

The set of beliefs regarding the fluidity and fairness of the social structure that allows individuals to move within different socio-economic levels.

Social Boundaries

The invisible lines that define the limits of acceptable behavior and participation within a society or group.

Permeable

Describes something that allows liquids or gases to pass through it, often used in the context of membranes or barriers.

Relative Homogeneity Effect

Tendency to see outgroup members as all the same, and ingroup members as more differentiated.