Assume that Simple Company had credit sales of $284,000 and cost of goods sold of $167,000 for the period, It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,500 when it uses the aging method. Before the end-ofperiod adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $420. Required: 1. Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts recelvable method. 2. Which of these methods is required by GAAP? Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts recelvable method. (If no entry is required for a transactionvevent, select "No Joumal Entry Required" in the first account feld.) Journal entry worksheet 2 Record the end-of-period adjustment for bad debts under the percentage of credit sales method. Complete this question by entering your answers in the tabs below. Prepare the joumal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts recelvable method. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 2 Record the end-of-period adjustment for bad debts under the percentage of credit sales method. Notei Enter debits before credist. Journal entry worksheet Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits. Assume that Simple Company had credit sales of $284,000 and cost of goods sold of $167,000 for the period. It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,500 when it uses the aging method. Before the end-ofperiod adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $420. Required: 1. Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method. 2. Which of these methods is required by GAAP? Complete this question by entering your answers in the tabs below. Which of these methods is required by GAAP
