Question

Assume that Simple Company had credit sales of $241,000 and cost of goods sold of $141,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the allowance for doubtful accounts is $2,100. Before the end-of-period adjustment is made, the allowance for doubtful accounts has a credit balance of $160.

Answer 1

The subject of this question is Accounting. The accounting profit of Simple Company can be calculated based on the given information, with an answer of $100,000.

Step-by-step explanation:

The subject of this question is Accounting. The question is asking about the accounting profit of Simple Company based on the given information. Accounting profit is calculated by subtracting explicit costs from total revenues. In this case, the total revenues are the credit sales of $241,000 and the explicit costs are the cost of goods sold of $141,000.

To calculate the accounting profit, we subtract the cost of goods sold from the credit sales: $241,000 - $141,000 = $100,000.

The primary topic of this question is accounting profit.