Smart Art Is a New Establishment

question 69

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 aging-of-receivables method to account for bad debts expense, and estimated $500 as uncollectible at year end. Therefore, the ending balance in the Allowance for Bad Debts would be:

• A)$150.
• B)$800.
• C)$200.
• D)$500.

Distinguish between policies based on coverage such as liability, fire, life, and workers' compensation insurance.

Understand the implications and mechanics of policy terms like coinsurance clauses and their impact on claims recovery.

Comprehend the necessity for acting in good faith in insurance dealings and the consequences of failure to do so.

Grasp the legal and contractual foundations guiding the cancellation and termination of insurance policies.

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Definitions:

Environmental Scanning

The process of collecting, analyzing, and using information about trends, events, and relationships within an organization's internal and external environment.

General Conditions

The overarching terms, situations, or factors that apply broadly across different contexts, often framing the environment in which specific actions or activities occur.

National Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment, measured across a country.

Labour Supply

The total hours that workers are willing and able to work at a given wage rate.