Ana Co uses the allowance method to account for bad debts. At the end of the period, Ana's unadjusted trial balance shows an accounts receivable balance of $40,000, allowance for doubtful accounts balance of $300 (credit), and sales of $500,000. Based on history. Ana 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 O $10,300 $800 $9,700 $1,100 O $500 O $10,000