value: 2.50 points M8-8 Estimating Bad Debts Using the Aging Method [LO 8-2] Ass

Question

value: 2.50 points M8-8 Estimating Bad Debts Using the Aging Method [LO 8-2] Assume that Simple Co. had credit sales of $244,000 and cost of goods sold of $144,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2,400. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $190. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense References eBook & Resources

Explanation / Answer

Bad debts expense to be recorded Estimated bad debts -Credit balance in Allowance for Doubtful Accounts 2,400-190 2210 Bad Debts expense 2,210

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