Smart Art Is a New Establishment

question 4

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 its year-end adjustment of bad debts expense.
-What is the ending balance in Accounts Receivable at the end of the year?

• A)$4,000
• B)$3,600
• C)$3,350
• D)$3,200

---

Definitions:

Point

A specific location in space with no dimension, represented by coordinates.

General Form

A standard way to write equations that allows for easy identification of key components.

Points

Defined locations in space, often represented as coordinates in a geometric or algebraic context.

Linear Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear, or evenly spread, manner.