2 Prepare the adjusting entry required on 31 December 20X2 to record the provision on doubtful accounts for each of the following independent assumptions:

(a) The provision for doubtful accounts is based on the ending balance of accounts receivable. Eighty percent of the sales for 20X2 were credit sales. The accountant of Mahler Company, Mr. Gustav, estimates, from past experience, that 10% of the 31 December 20X2 accounts receivable will prove to be doubtful.