Rainbow Company uses the balance sheet approach to estimate uncollectible accounts. By aging the customers' accounts, it was estimated that $7,325 of the company's month-end accounts receivable would prove to be uncollectible. Determine the amount that should be debited to the Uncollectible Accounts Expense account in the month-end adjusting entry under each of the following independent assumptions:

Required:

(A) Before making any adjustment, the Allowance for Doubtful Accounts has a $635 credit balance.

(B) Before making any adjustment, the Allowance for Doubtful Accounts has a debit balance of $720.