Determine the amount to be added to Allowance for Doubtful Accounts in each of t

Question

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $300 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of accounts receivable indicates uncollectible receivables of $8,500. Amount added Ending balance b. Credit balance of $500 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 2% of credit sales, which totaled $1,000,000 for the year. Amount added$ Ending balance $

Explanation / Answer

a. Amount added = $8200

Ending balance = $8500

b. Amount added = $20000

Ending balance = $20500

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