A O eztomheducationcomhmtpx Question 2 of 8 value 1250 point

A O ezto.mheducation.com/hm.tpx Question 2 (of 8 value 12.50 points 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 Doubtfhul Accounts has a credit balance of $250 What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense References eBook & Resources Worksheet Difficulty 1 Easy O Type here to search

Solution

Bad debts expense for the year: Credit sales for the year 250,000 Expected uncollectible accounts 1% of credit sales Bad debts expense for the year 2500