Question
15) Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each
15) 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 $490 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $7,700.
| Amount added | ? |
| Ending balance | ? |
b. Credit balance of $490 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 3% of credit sales, which totaled $1,192,000 for the year.
| Amount added | ? |
| Ending balance | ? |
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Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making
Authors: Mark S. Bettner
2nd Edition
1947098683, 9781947098688
