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M$8-7($Static$)$ Estimating Bad Debts Using the Percentage of Credit Sales Method $[$LO $8-2]$

Assume Simple Company had credit sales of $$250,000$ and cost of goods sold of $$150,000$ for the period. Simple uses the percentage of credit sales method and estimates that $1$ percent of credit sales would result in uncollectible accounts. Before the end$-$of$-$period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $$250.$

Required:

What amount of Bad Debt Expense would the company record as an end$-$of$-$period adjustment?

Answer is complete but not entirely correct.

Bad Debt Expense $$5,000**$