M8-7 (Static) Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] Assume Simple Company had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 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 $250. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment