Eagle Co., which uses an Allowance for Doubtful Accounts, had the following transactions in 2021, 2022, and 2023. (Use the income statement approach under the allowance method.)

a. Journalize the transactions. (The company uses the income statement approach in estimating Bad Debts.)
b. Journalize how Eagle Co. would record the Kim Nickles Bad Debts situation if the direct write-off method were used.

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2021 Dec. 2022 Apr. 3 Wrote off Sasha Frederick account of $4,200 as uncollectible. June 4 Wrote off Kim Nickles account of $3,100 as uncollectible. 2023 Aug. 31 Recorded Bad Debts Expense of $12,500. 5 Recovered $440 from Kim Nickles.