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.

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Definitions:

Negative Sides

The drawbacks or disadvantages associated with a particular situation, decision, or action.

Early Childhood Rules

Guidelines or standards established to shape and guide behavior and development in children during the early stages of their lives.

Dysfunctional

Characterized by abnormal or impaired functioning, especially in the context of social, behavioral, and emotional aspects.

Rigid Socially

A state or behavior that is inflexible and unadaptable in social situations, often leading to difficulty in interactions and relationships.