Exercise 4-20B Recording estimates of future discounts LO P6 Med Labs has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $5,400. Of the $5,400 of receivables, $1,200 are within a 3% discount period, meaning that it expects buyers to take $36 in future- period discounts arising from this period's sales. a. Prepare the December 31 year-end adjusting journal entry for future sales discounts. b. Assume the same facts above and that there is a $7 year-end unadjusted credit balance in Allowance for Sales Discounts. Prepare the December 31 year-end adjusting journal entry for future sales discounts. View transaction list 1 Record the adjusting journal entry for future sales discounts. 2 Record the adjusting journal entry for future sales discounts. Credit Note : = journal entry has been entered Record entry Clear entry View general journal c. Is allowance for sales discounts a contra asset or a contra liability account? O A contra asset account A contra liability account