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.

Learn about the impact of gender and race on poverty.

Understand the changing dynamics and perceptions regarding poverty and welfare over time.

Understand the demographics and rates of poverty among different racial and ethnic groups.

Identify and describe the liberal and conservative perspectives on poverty.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace, determined by the forces of supply and demand.

Marginal Cost

The financial implication of producing an extra unit of a product or service.

Downstream Division

A segment of a business operation that focuses on the processing, marketing, and selling of finished products to consumers as opposed to raw material processing.

Profit Centers

Segments or divisions within an organization that are directly responsible for generating profit through their operations and decision-making.