Find what amount of bad debt expense would company record

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Discussion: Estimating Bad Debts Using the Percentage of Credit Sales Method

Assume Simple Co. had credit sales of $253,000 and cost of goods sold of $153,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 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 $280. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Reference no: EM131908632

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