Determine the Amount to Be Added to Allowance for Doubtful $\$ 500$

Essay

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases:
(a)Balance of $\$ 500$ in the allowance account just prior to adjustment. Andysis of accountsreceivable indicates doubtful accounts of $\$ 9,500$ .

(b)Balance of $\$ 950$ in the allowance account just prior to adjustment. Uncollectibles are estimated at $3.5 \%$ of sales, which totaled $\$ 1,000,000$ for the year.