Question: Multiple Choice Question Yates Co. uses the allowance method to account for bad debts. At the end of the period, Yate's unadjusted trial balance shows

Multiple Choice Question Yates Co. uses the allowance method to account

Multiple Choice Question Yates Co. uses the allowance method to account for bad debts. At the end of the period, Yate's unadjusted trial balance shows an accounts receivable balance of $10,000; allowance for doubtful accounts balance of $400 (credit); and sales of $500,000. Based on history Yates estimates that bad debts will be 1% of sales. The entry to record estimated bad debts will include a debit to bad debts expense in the amount of $5,000 $1,400 O $600 $4.500 O $5.400 Need help? Review these concept resources. Reading

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