The Accounts Receivable account of Helmond Company shows a debit balance of $104,000 at the end of the year. An aging analysis of the individual accounts indicates estimated uncollectible accounts to be $6,700.

Prepare the entry to record the uncollectible accounts expense under each of the following independent assumptions:

(a) Allowance for Uncollectible Accounts has a credit balance of $800 before adjustment, and

(b) Allowance for Uncollectible Accounts has a debit balance of $800 before adjustment. What is the balance of Allowance for Uncollectible Accounts after each of these adjustments?

Aging Method and Net Sales Method Contrasted