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Determine the amount to be added to Allowance for Doubtful Accounts in each of following cases.

A) Credit balance of $300 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of 8500.

amount to be added to allowance?
new ending balance?

B) Credit balance of $500 in the allowance account just prior to adjustment. Uncollectable accounts are estimated at 2% of sales, which totaled 1,000,000 for the year.

amount to be added to allowance?

new ending balance?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9403180

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