This is incorrect. Why?

Credit sales = 250,000

Allowance for doubtful account required (250000*1%) = 2,500

Already balance of allowance for doubtful accounts = 250

Allowance for doubtful account need to be made (2500-250) = 2,250

Hence, the bad debt expenses is $ 2,250

Assume Simple Co. 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. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? * Answer is complete but not entirely correct. Bad Debt Expense $ 2,250 X Rectate