Determining amount of bad debt expense

Reference no: EM13145347

Assume Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the percentage of credit sales method and estimates that ½ 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 $250.

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

Reference no: EM13145347

Questions Cloud

How does this affect your income statement : Assume that after the entries in part (a) wer made, a physical count revealed that ending inventory was actually 610 units. What additional entry is required? How does this affect your income statement?

Settlement of an open accounts receivable : Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?

Probability mean number of diagnostic services is more : If you select a random sample of 200 children and observe the number of diagnostic services each of them receives, what is the probability that the mean number of diagnostic services is more than 1.72?

What would net carrying value of the bonds : Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would net carrying value of the bonds be shown as on Little's December 31, 2007, balance sheet?

Determining amount of bad debt expense : What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Distinguish the inheritance of dominant and recessive genes : What genetic criteria distinguish the inheritance of dominant and recessive genes? Autosomal and sex linked?

What is the gain or loss recognized by the corporation : What is the gain or loss recognized by the corporation when it issues its shares to Bill? What is the basis to the corporation of the property it received from Bill?

Concept of working capital : Discuss the concept of working capital what shall be the repercussions if the firm has

What is the probability of obtaining a spotted, grey-eyed : In addition, the L,l allelic pair is subject to abnormal transmission ratios in males only, such that heterozygous males transmit 70% l-bearing sperm and 30% L-bearing sperm.

User Account

All Pages