M8-7 (Algo) Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] Assume Simple Company had credit sales of $247,000 and cost of goods sold of $147,000 for the period, Simple uses the percentage of credit sales method and estimates thot 2 percent of credit sales would result in uncollectible occounts, Before the end-of-period odjustment is made, the Allowance for Doubtful Accounts tas a credit balance of $220. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment? M8-8 (Algo) Estimating Bad Debts Using the Aging Method [LO 8-2] Assume that Simple Company had credit soles of $253,000 and cost of goods sold of $153,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,300. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $280. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment