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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: Multiple choice question. $500 $10,000 $10,100 $9,900 $600 $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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