leo co. uses the allowance method to account for bad debts. at the end of the year, 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 $600 $9,900 $400 $10,100 $10,000