A newly created design business called Smart Art is just finishing up its first year of operations.During the year,there were credit sales of $40,000 and collections of $36,000.One account for $650 was written off.Smart Art uses the percent-of-sales method to account for uncollectible account expense,and has decided to use a factor of 2% for their year-end adjustment of uncollectible account expense.
-At the end of the year,what is the ending balance in Accounts receivable?
A) $4,000
B) $36,000
C) $3,350
D) $39,350

Question

Quizplus · Accepted Answer

C) Calculations: $40,000 - $36,000 - $650 = $3,350

A Newly Created Design Business Called Smart Art Is Just