Finish co. uses the allowance method to account for bad debts. at the end of 2010, finish co.'s unadjusted trial balance shows an accounts receivable balance of $30,000; allowance for doubtful accounts balance of $200 (credit); and sales of $600,000. based on history, finish 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:
a. $500
b. $6,200
c. $100
d. $5,800
e. $6,000
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Finish co. uses the allowance method to account for bad debts. at the end of 2010, finish co.'s unad...
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