Assume Simple Co. had credit sales of $245,000 and cost of goods sold of $145,000 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 $200.

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

Bad Debt Expense

?