A Newly Created Design Business Called Smart Art Is Just

Multiple Choice

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 ageing- of- accounts method to account for Bad debts expense, and has calculated an amount of $200 as their estimate of uncollectable amounts at year- end. At the end of the year, what is the ending balance in Accounts receivable?

A) $36 000
B) $3 350
C) $39 350
D) $4 000