Smart Art Is a New Establishment

question 45

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. At the end of the year, the balance of bad debts expense would be:

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

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Definitions:

Non-Hispanic White

Non-Hispanic White refers to people in the United States who identify as white and are not of Hispanic or Latino origin, as classified by demographic and census data.

Socioeconomic Status

A measure of an individual's or family's social position and economic level relative to others, based on income, education, and occupation.

Suicides

The act of intentionally causing one's own death, often stemming from factors such as mental disorders, extreme stress, or trauma.

Long-Term Stressor

A persistent source of stress that continues over an extended period of time, impacting one's health and well-being.