Answered: Assume that Simple Company had credit… | bartleby

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that Simple Company had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the aging
method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,900. Before the end-of-period
adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $340.
Required:
What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Bad Debt Expense

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