End-of-period adjustment, Assume Simple Co. had credit

End-of-period adjustment

Reference no: EM13144976

Assume Simple Co. had credit sales of $282,000 and cost of goods sold of $138,000 for the period. Simple uses the percentage of credit sales method and estimates that 0.25 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 $285.

Required:

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

Reference no: EM13144976

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