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Determine the following for each case: 1. The amount to be added to Allowance for Doubtful Accounts. 2. The ending balance of the Allowance

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Determine the following for each case: 1. The amount to be added to Allowance for Doubtful Accounts. 2. The ending balance of the Allowance for Doubtful Accounts. Case (alpha)Credit balance of $700 in the allowance account just prior to adjustment. Using the Analysis of A/R Method indicates doubtful accounts of $8,700. (beta) Credit balance of $900 in the allowance account just prior to adjustment. Uncollectible accounts are estimated at 2% of sales, using the % of Sales Method; and sales totaled $1,000,000 for the year. ANSWERS: Case (alpha) (beta) 1. 2.

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