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BE5-7 At the end of the year, Mercy Cosmetics' balance of Allowance for ...

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Accounting

BE5-7 At the end of the year, Mercy Cosmetics' balance of Allowance for
Uncollectible Accounts is $600(credit) before adjustment. The balance of
Accounts Receivable is $25,000. The company estimates that 12% of accounts will
not be collected over the next year. What adjusting entry would Mercy Cosmetics
record for Allowance for Uncollectible Accounts?
Record the adjusting entry for uncollectible accounts ((O5-5)
BE5-8 Refer to the information in BE5-7, but now assume that the balance of
Allowance for Uncollectible Accounts before adjustment is $600(debit). The
company still estimates future uncollectible accounts to be 12% of Accounts
Receivable. What is the adjusting entry Mercy Cosmetics would record for
Allowance for Uncollectible Accounts? Does the amount of the adjustment differ
from BE5-7? If so, why?
*please answer both parts of the question
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