question archive M8-7 Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] Assume Simple Co
M8-7 Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] Assume Simple Co
Subject:AccountingPrice: Bought3
M8-7 Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] 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? Bad Debt Expense
