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g 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

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Answer:

Missing word "is estimated as $8,820. Amount added Ending balance b. Credit balance of $450 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $1,111,000 for the year. Amount added Ending balance"

a. Amount added = Balance as per aging method - Credit balance

Amount added = $8,820 - $370

Amount added = $8,450

So, Amount added = $8,450, Ending balance = $8,820

b. Amount added = 2% * Credit sale

Amount added = 2% * $1,111,000

Amount added = $22,220

Ending balance = $22,220 + $370

Ending balance = $21,850

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