ProBuilder has the following June 30, 2016, fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,000. Of the $10,000 of receivables, $2,000 are within a 3% discount period, meaning that it expects buyers to take $60 in future discounts arising from this period's sales.
a. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future sales discounts.
b. Assume the same facts above and that there is a $10 fiscal-year-end unadjusted credit balance in the Allowance for Sales Discounts. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future sales discounts.