Yates Co. uses the allowances method to account for bad debts. At the end of the period, Yate unadjusted trial balance shows an accounts receivable balance of $10,000; allowance for doubtful accounts balance of $400 (credit); and a sales of $500,000. Based on history, Yates estimates that bad debts will be 1% of sales. Estimated bad debts Debit to Bad Debts Expense +5 000 (+500 000x 0 11 = 65 000) Credit to Allowance for Doul ar 45 000