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 $$370$ in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $$7,010.$

Line Item Description Amount

Amount added $fill in the blank $1$

Ending balance $fill in the blank $2$

b$.$ Credit balance of $$370$ in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at $1\%$ of credit sales, which totaled $$1,097,000$ for the year.

Line Item Description Amount

Amount added $fill in the blank $3$

Ending balance $fill in the blank $4$