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Business, 23.04.2020 22:46 migos0917

Leo Co. uses the allowance method to account for bad debts. At the end of 2010, Leo Co.'s accounts receivable balance is $25,000; allowance for doubtful accounts balance of $100 (credit); and sales of $500,000. Based on history, Leo estimates that bad debts will be 2% of accounts receivable. The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:

a.$500
b.$10,000
c.$600
d.$9,900
e.$10,100
f. $400

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Leo Co. uses the allowance method to account for bad debts. At the end of 2010, Leo Co.'s accounts r...
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