III. a. Prepare journal entries for the following independent situations:

1. The allowance for doubtful accounts has a $ 625 debit balance prior to adjustment. An aging schedule prepared on December 31 shows a balance of $7,600.

2. The allowance for doubtful accounts has an $800 debit balance prior to adjustment. Net credit sales during the year are $260,000 and 3% are estimated to be uncollectible.