End-of-period adjustment problem

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Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $1,600. 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: EM13148841

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