Assume that Simple Co. had credit sales of $276,000 and cost of goods sold of $163,000 for the period.

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Assume that Simple Co. had honor sales of $276,000 and require of commodities sold of $163,000 for the limit. It estimates that 3 percent of honor sales in uncollectible accounts when it uses the percentage of honor sales system and it estimates that the withhold ending redress in the Allowance for Doubtful Accounts is $9,000 when it uses the aging system. Before the end-of-limit compound is made, the Allowance for Doubtful Accounts has a honor redress of $380.

  1. Prepare the chronicle memorandum to annals the end-of-limit compound for bad debts lower the (a) percentage of honor sales system 
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