Exercise 5-20B 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, $5,500. Of the $5,500 of receivables, $1,250 are within a 2% discount period, meaning that it expects buyers to take $25 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 $9 year-end unadjusted credit balance in Allowance for Sales Discounts. Prepare the December 31 year-end adjusting journal entry for future sales discounts.

Answer and Explanation:

The adjusted journal entries are shown below:

a. Sales discount Dr $25

          To Allowance for sales discount $25

(Being the expected sales discount is recorded)

For recording this we debited the sales discount as it increased the discount and credited the allowance for sales discount as it also increased the allowance balance

b.  Sales discount Dr $16  ($25 - $9)

          To Allowance for sales discount $16

(Being the expected sales discount is recorded)

For recording this we debited the sales discount as it increased the discount and credited the allowance for sales discount as it also increased the allowance balance

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.