M8-7 Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] 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? ed Bad Debt Expense ook Tences