Modern Designs Is a New Business

question 30

Multiple Choice

Modern Designs is a new business. During its first year of operations, credit sales were $45,000 and collections of credit sales were $34,000. One account, $700, was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. Bad debts expense for the first year of operations is ________.

• A) $650
• B) $1,350
• C) $700
• D) $2,370

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Definitions:

Appreciating Diversity

Recognizing and valuing the differences among people, such as culture, race, gender, or beliefs, and understanding that these differences contribute to a richer, more varied experience.

Soft Skill

Personal attributes and interpersonal skills that enhance an individual's interactions, job performance, and career prospects.

Listening Skills

The ability to accurately receive and interpret messages in the communication process.

Faking Attention

Pretending to give one's attention or to be interested when not actually paying attention or interested.