Assume Simple Co. recorded credit sales of $243,000 and cost of goods sold of $143,000 for the current period. Simple uses the percentage of credit sales method and estimates that 2 percent of its credit sales will not be collected. Before the end-of-period adjustment to record bad debt expense for the current period is recorded, the Allowance for Doubtful Accounts has a credit balance of $180. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

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