Assume that Simple Co. had credit sales of $290,000 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 $1,655. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $255. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment? (Omit the "$" sign in your response.) Bad Debt Expense $ debit Explanation: Allowance for doubtful Accounts Desired balance $ 1,655 credit –Unadjusted balance 255 credit Required adjustment $ 1,400 credit

Assume that Simple Co. had credit sales of $290,000 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 $1,655. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $255.

Required:

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?  (Omit the "$" sign in your response.)

Bad Debt Expense

$

debit

Explanation:

Allowance for doubtful Accounts
Desired balance	$	1,655	credit
–Unadjusted balance		255	credit
Required adjustment	$	1,400	credit