Med Labs has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts, $0 and Accounts Receivable, $6,300. Of the $6,300 of receivables, $1,650 are within a 2% discount period, meaning that it expects buyers to take $33 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 $5 year-end unadjusted credit balance in Allowance for Sales Discounts. Prepare the December 31 year-end adjusting journal entry for future sales discounts.