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:
a. $5,845b. $4,980c. $4,115d. $4,300e. $4,450

Debit to bad debts expense in the amount of $5,000

Explanation:

The computation of the bad debt expense is shown below:

= Credit sales × estimated percentage given

= $500,000 × 1%

= $5,000

The journal entries are  also shown below; for better understanding

Bad debt expense A/c Dr  $5,000

  To Allowance for doubtful debts  $5,000

(Being bad debt expense is recorded)

The other information which is given in the question is not relevant. Hence, ignored it

3,500 beverages

explanation:

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.