ProBuilder has the following June 30 fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,400. Of the $10,400 of receivables, $2,200 are within a 3% discount period, meaning that it expects buyers to take $66 in future discounts arising from this periods sales.

1. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts.
2. Assume the same facts above and that there is a $7 fiscal-year-end unadjusted credit balance in the Allowance for Sales Discounts. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts.