Smart Art Is a New Business

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