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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 $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

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