Company record as an end-of-period adjustment

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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 1 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: EM131288659

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Company record as an end-of-period adjustment : 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 1 percent of credit sales would result in uncollectible accounts. What amount of Ba..

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