Smart Art Is a New Business

question 129

Multiple Choice

Smart Art is a new business.During its first year of operations,credit sales were $44,000 and collections from credit sales were $32,000.One account for $625 was written off.Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible.What is the balance of Accounts Receivable at the end of the first year?

• A)$12,000
• B)$10,495
• C)$11,375
• D)$11,120

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Definitions:

Strain Theory

A sociological theory positing that societal pressures may push individuals toward deviance or crime when they are unable to achieve culturally approved goals by legitimate means.

Cultural Ideals

Shared beliefs or values within a society that represent the aspirational norms of conduct, defining what is considered desirable or worthy.

Social Reality

refers to the sum of social facts, relationships, and institutions that society agrees upon and constructs collectively.

Learning Theory

A theoretical framework describing how knowledge is absorbed, processed, and retained during learning, involving cognitive, emotional, and environmental influences as well as prior experience.