How do you calculate the Ending Balance for Allowance for Doubtful Accounts?

Instructions Help Net Credit Sales Accounts Receivable Aging of Receivables Net Credit Sales $310,000.00 Net Credit Sales : ========= Balance of Accounts Receivable: Allowance for Doubtful Accounts: $20,000.00 (400.00) (Debit Balance) Net Accounts Receivable: $20,400.00 Amount of Bad Debts Expense: $15,500.00 Ending Balance, Allowance for Doubtful Accounts: Ending Balance, Net Accounts Receivable: $4,900.00 Verify Answer Next Problem Estimated Bad Debts are Based on 5.00% of Net Credit Sales Help on estimating bad debts expense on the basis of Net Credit Sales. Multiply the percentage of net credit sales estimated to become bad debts times the total of net credit sales. This amount is debited to Bad Debts Expense and credited to Allowance for Doubtful Accounts. The unadjusted balance of the Allowance for Doubtful Accounts is ignored in this calculation. Net Accounts Receivable is the balance of Accounts Receivable minus the balance of the Allowance for Doubtful Accounts. If bad debts are estimated to be 1.5% of net credit sales, which total $1,340,000, the Bad Debts Expense account is debited for $20,100 (= $1,340,000 x 0.015) and the Allowance for Doubtful Accounts is credited for $20,100