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Question 3 (of 6) value: 2.50 points M8-7 Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] Assume Simple Co. had credit
Question 3 (of 6) value: 2.50 points M8-7 Estimating Bad Debts Using the Percentage of Credit Sales Method [LO 8-2] Assume Simple Co. had credit sales of $251,000 and cost of goods sold of $151,000 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 $260. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense References eBook & Resources Worksheet Difficulty: 1 Easy M8-7 Estimating Bad Debts Learning Objective: 08-02 Estimate and
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