Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Laser Tech Co., a hospital supply company that uses the direct write-off method of accounting for uncollectible receivables:
May 10. Received $10,000 on an account and wrote off the remainder owed of $31,500 as uncollectible.
Dec. 2. Reinstated the account that had been written off on May 10 and received $31,500 cash in full payment.