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 $460in Allowance for Doubtful Accounts Just prior to adjustment. Analysis of Accounts Receivable indicates uncollectable receivables of $7,800.
Amount added: $ Ending balance: $
(b) Credit balances of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 1% of credit sales, which totaled $1,165,000 for the year.
Amount added: $ Ending balance: $