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.
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 $350 in Allowance for Doubtful Accounts just peior to adjustment. Analysis of Accounts Receivabie indicates uncoliectible receivables of $8,900. (b) Credit balance of $350 in Alowance for Doubtful Accounts just prior to adjustment. Uncollectble receivables are estimated at 1\% of eredit sales, which totaled $991,000 for the year
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