Assume simple co. had credit sales of 282000 and cost of, Ask an Expert

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Assume Simple Co. had credit sales of $282,000 and cost of goods sold of $138,000 for the period. Simple uses the percentage of credit sales method and estimates that 0.25 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $285.

Required:

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9435120

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