Flash Co. uses the allowance method to account for bad debts. At the end of the year, Flash Co.'s unadjusted trial balance shows an accounts receivable balance of $45,000; allowance for doubtful accounts balance of $400 (debit); and sales of $1,500,000. Based on history, Flash estimates that bad debts will be 0.5% of sales. The entry to record estimated bad debts will include an debit to Bad Debts Expense in the amount of: O $7,900 O $795,000 O $7,100 O $7,500 O $750,000

Flash Co, uses the allowance method to account for bad debts. At the end of the yeac, Flash Co:s unadjusted trial balonce shows an accounts recervable balance or $45,000, allowance for doubtful accounts balance of $400 (debit) and sales of $1,500,000. Based on history. Flash estimates that bad debts will be 0.5% of sales. The eniry to record estimated bad debts will include an debit to Bad Debts Expense in the amount of: $7,900 5795,000 57100 57500 $750,000